The National Stock Exchange has filed the draft red herring prospectus (DRHP) for its IPO with securities and exchange board of India on Wednesday.
This marks stride for India's largest bourse in its path to go public. The entirely Offer for Sale (OFS) issue consists of 14.89 crore shares; State Bank of India will be offloading 2.475 crore shares, making it the largest seller.
Notably, NSE's largest shareholder, Life Insurance Corporation will not partake in the offer. NDTV Profit had earlier reported that LIC will not be divesting any stake in the OFS.
Canada Pension Plan, Bank of Baroda, and GIC are among the key sellers for the offer. Canada Pension Plan Investment Board is looking to offload up to 1.18 crore shares, while GIC may sell up to 1.06 crore shares.
Besides that, Bank of Baroda is set to divest up to 1.09 crore shares, while The New India Assurance Company may sell up to 1.05 crore shares.
Other shareholders planning stake sales include Stock Holding Corporation of India, which may offload up to 1.08 crore shares, Aranda Investments with a proposed sale of up to 1.12 crore shares, and MS Strategic Investments, which may divest up to 1.60 crore shares.
The IPO will be a pure offer-for-sale (OFS), meaning NSE will not receive any proceeds from the issue. The proceeds from the share sale will go entirely to the existing shareholders selling their stakes.
In the DRHP, NSE has highlighted key business risks, including its dependence on transaction charges, which account for more than 78% of its operating revenue. The bourse also flagged its heavy reliance on the derivatives segment as a key risk to its business model.
Additionally, it explained how SEBI's derivatives crackdown hit revenue and volumes. The bourse accounts for 11.38% of global cash equity trades by number of transactions.
Once listed, India's largest stock exchange will be facing off an already listed BSE, the country's oldest bourse. Investors will soon have a pick between India's top two stock exchanges.
ALSO READ: NSE Vs BSE: How Does The IPO-Bound Exchange Stack Up Against India's Oldest Bourse?
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