NSE shareholders trim stake sales as ₹22,000 crore IPO prices below expectations
₹22,000-crore issue reflects reduced valuations and NSE’s push for diversification
The National Stock Exchange (NSE) sold shares through an offer-for-sale (OFS) totalling ₹22,000 crore, below market expectations. The IPO was priced in the ₹1,700-1,785 band, compared to the anticipated valuation of over ₹2,000 per share. Consequently, existing shareholders trimmed their planned stake sales. NSE eventually received 12.64 crore shares, or 5.11% of its equity, for the OFS.
This marked a reduction from the 14.89 crore shares initially proposed in the draft prospectus. Only around 4.1-4.25% of the company's equity needed to be offered to comply with regulatory norms at the lower valuation. The IPO is set to raise ₹21,494-22,569 crore, significantly less than the previously anticipated ₹30,000 crore.
Despite lower-than-expected valuations, several major investors, including SBI, MS Strategic (Mauritius), and CPPIB, continued to participate. NSE's CEO, Ashishkumar Chauhan, explained that the OFS was more challenging than expected, with a significant effort required to convince selling shareholders to part with their stakes. The exchange aims to achieve full public floatation in the future, subject to lock-in requirements.
Looking ahead, NSE seeks to diversify revenue streams, with transaction charges remaining the largest source. New revenue sources such as data, connectivity, and indices collectively account for nearly 11% of the exchange's revenue, which is growing at a rapid pace.
Written by urgent.news from Hindu BusinessLine's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
