NSE raises Rs 6,746 crore from anchor investors ahead of IPO; LIC gets biggest share

The National Stock Exchange (NSE) has mobilised Rs 6,746 crore from anchor investors ahead of its much-awaited initial public offering, with Life Insurance Corporation of India (LIC) receiving the largest allocation. The anchor book attracted participation from a wide range of domestic and international institutional investors, setting the stage for the opening of the public issue on September 18. The IPO, expected to raise around Rs 30,000 crore, is among the biggest public offerings in India and marks a major milestone for the country’s largest stock exchange after years of regulatory delays surrounding its proposed listing.

LIC leads allocation

LIC emerged as the biggest investor in the anchor portion, securing the largest allocation of shares among participating institutions. The anchor round also drew interest from domestic mutual funds, insurance companies and foreign institutional investors. Anchor investors are allotted shares before an IPO opens to the wider public, providing an early indication of institutional demand for an issue. The Rs 6,746-crore mobilisation gives NSE substantial institutional backing ahead of the three-day public subscription window.

IPO opens September 18

NSE’s IPO is scheduled to open for subscription on September 18, with the issue structured entirely as an offer for sale by existing shareholders. This means the exchange itself will not receive proceeds from the share sale, with the money going instead to shareholders selling their stakes. The offering involves around 14.89 crore shares, representing approximately 6 per cent of NSE’s equity. The IPO is expected to value the exchange among India’s most valuable listed financial-market institutions.

Long wait ends

The public offering brings NSE closer to the end of a listing process that has stretched over several years. The exchange had originally sought to enter the public markets much earlier, but regulatory issues and investigations delayed its plans. With key hurdles subsequently addressed, the IPO process gathered momentum this year, paving the way for the exchange to finally approach public investors.

Listing next week

Following the completion of the public issue, NSE shares are expected to make their stock market debut on September 25. The listing will put the country’s dominant equity and derivatives exchange itself on the public market, creating an unusual situation in which investors will be able to own shares in the institution that operates one of India’s principal trading platforms.

The strong anchor mobilisation ahead of the issue reflects institutional interest in NSE’s position at the centre of India’s rapidly expanding capital markets, supported by rising retail participation, increasing trading volumes and the continuing growth of the country’s investment ecosystem.