The National Stock Exchange (NSE) on Friday fixed a price band of Rs 1,700-1,785 per equity share for its much-awaited initial public offering (IPO), which will open for subscription on September 17.
The Rs 22,569-crore IPO will close on September 21, making it the country's second-largest public issue after Hyundai Motor India's Rs 27,870-crore offering in 2024.
The IPO comes nearly a decade after NSE's plans to go public were stalled amid regulatory hurdles. With the Sebi clearance now in place, the exchange is set to make its market debut on September 24.
NSE IPO subscription to open on September 17
Bidding for anchor investors will take place on September 16, according to a public announcement.
The IPO will be entirely an offer for sale (OFS) of up to 12.64 crore equity shares by existing shareholders, compared with 14.9 crore shares planned earlier.
The reduction in the OFS size has brought down the overall issue size from the initial estimate of Rs 30,000 crore. At the lower end of the price band, the issue is estimated at Rs 21,494 crore, while at the higher end, it will be around Rs 22,569 crore, falling short of becoming India's largest-ever public offering.
NSE IPO to surpass LIC issue
Hyundai Motor India's Rs 27,870-crore IPO holds the record of the country's largest public issue. The NSE offering, however, would surpass the Rs 21,000-crore IPO of Life Insurance Corporation of India (LIC) launched in 2022.
As part of the issue, the company has reserved equity shares worth up to Rs 70 crore for eligible employees. NSE employees will also be offered a discount of Rs 170 per equity share.
The issue will have a reservation of 50 per cent for qualified institutional buyers (QIBs), 15 per cent for non-institutional investors (NIIs) and 35 per cent for retail investors.
Existing shareholders cut stake sale
As per the Red Herring Prospectus (RHP), existing shareholders have also pared down their stake sale. State Bank of India (SBI) has reduced its proposed OFS to around 1.60 crore shares from 2.47 crore shares, while MS Strategic (Mauritius) Ltd has cut its offer to 1.1 crore shares from 1.6 crore shares.
Bank of Baroda, Stock Holding Corporation of India Ltd and General Insurance Corporation of India have also reduced their proposed share sale, while SBI Capital Markets Ltd is a new selling shareholder in the RHP.
Since the issue is entirely an OFS, the proceeds from the share sale will accrue to the selling shareholders and not to NSE.
Sebi clearance clears way for NSE listing
The public issue marks a major milestone for NSE, after markets regulator Sebi last week gave clearance to the exchange to proceed with the offering. Its listing plans had remained stalled for nearly a decade amid regulatory hurdles, including the co-location controversy.
The NSE offering will compete with that of Jio Platforms, the digital services arm of billionaire Mukesh Ambani-led conglomerate Reliance Industries. Jio's offering is estimated at Rs 37,700 crore, though its timing has not yet been announced.