NSE IPO: What changed from DRHP to RHP
The bourse has cut the OFS to 12.64 crore equity shares from 14.9 crore shares proposed in the DRHP, roughly a reduction of 15%. Since the IPO is entirely an OFS, the cut in the number of shares directly brings down the overall issue size.
The National Stock Exchange's highly anticipated initial public offering (IPO) has seen several modifications since the Draft Red Herring Prospectus (DRHP) was filed in June. The most notable change is the reduction in the issue size, with the offer-for-sale (OFS) being cut from 14.9 crore shares to 12.64 crore shares, a 15% decrease.
This reduction directly impacts the overall issue size, as the IPO is entirely an OFS and does not involve issuing new shares. Consequently, the IPO's estimated raise has dropped from around ₹30,000 crore to ₹21,494-22,569 crore, depending on the price band. At the higher end of the band, the issue could still rank among India's largest, but it will fall short of the ₹27,870-crore IPO by Hyundai Motor India in 2024.
The price band has also been revised, dropping from the initial ₹2,000-2,100 per share range to ₹1,700-1,785 per share. This, coupled with the lowered OFS, results in a revised implied valuation of Rs 4.2 lakh crore, lower than the earlier estimate of ₹5 lakh crore. Share-sale plans of existing shareholders have been adjusted accordingly, with several entities reducing their proposed sales.
Some shareholders, however, have maintained their initial offer sizes. Notably, the selling shareholders, including State Bank of India, Bank of Baroda, and others, have reduced their offers, potentially anticipating better valuations in the future. The IPO, entirely an OFS, will open for subscription on September 17 and conclude on September 21, with anchor investor bidding set for September 16. NSE shares are expected to debut on September 24.
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