- NSE will start investor roadshows for its IPO from July 17 across global financial hubs
- The exchange targets a Rs 5 lakh crore valuation with a 6% market cap issue size
- IPO listing is planned for the second half of September, subject to market conditions
The National Stock Exchange is set to begin investor roadshows for its proposed initial public offering from July 17, as it moves closer to a planned listing in the second half of September, according to people familiar with the matter.
The exchange plans to meet investors in the U.S., London, Singapore, Hong Kong, the Middle East and India as part of the marketing exercise, the sources said.
The roadshows are expected to gauge investor demand and support price discovery ahead of the proposed share sale. However, the final issue size, valuation and listing timeline remain subject to market conditions and investor feedback received during the roadshows, the sources added.
NSE is targeting a valuation of about Rs 5 lakh crore and is considering an issue size equivalent to around 6% of its market capitalisation, according to the sources.
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Roadshows To Cover Global Investor Hubs
The investor meetings are scheduled to begin on July 17 and will span major financial centres across North America, Europe, Asia and the Middle East, the people said.
NSE is aiming to complete the listing in the second half of September, although the timeline could change depending on market conditions, they added.
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IPO Filing Marks Key Milestone
On June 17, the National Stock Exchange filed its draft red herring prospectus with the Securities and Exchange Board of India for its proposed initial public offering.
The IPO is entirely an offer for sale comprising 14.89 crore shares. Existing shareholders, rather than the exchange, will sell their stakes, meaning NSE will not receive any proceeds from the offering.
State Bank of India is the largest selling shareholder and plans to offload 2.475 crore shares. Life Insurance Corporation of India, the exchange's largest shareholder, will not participate in the offer.
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Other proposed sellers include Canada Pension Plan Investment Board, Bank of Baroda, GIC, The New India Assurance Company, Stock Holding Corporation of India, Aranda Investments and MS Strategic Investments.
In its draft prospectus, NSE said transaction charges account for more than 78% of its operating revenue and identified its dependence on derivatives trading as a key business risk. The exchange also said regulatory measures affecting derivatives trading had weighed on trading volumes and revenue.
Once listed, NSE will join BSE as a publicly traded stock exchange in India.
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