- NSE may file its Draft Red Herring Prospectus as early as today for its IPO
- The IPO could value NSE at over Rs 5 lakh crore, among India's largest offerings
- The offer size might be around 5% of NSE's equity, above SEBI's 2.5% minimum float
The National Stock Exchange is likely to take a key step towards its long-awaited public listing, with sources indicating that the bourse may file its Draft Red Herring Prospectus (DRHP) as early as today.
The proposed IPO is expected to value NSE at more than Rs 5 lakh crore, potentially making it one of India's largest-ever public offerings. Sources said the offer size could be around 5% of the exchange's equity capital, well above SEBI's minimum public float requirement of 2.5% for companies valued above Rs 10,000 crore.
The issue is expected to be structured as an offer-for-sale, with existing shareholders offloading part of their holdings. However, Life Insurance Corporation of India (LIC), the exchange's largest public-sector shareholder with a 10.72% stake, is unlikely to tender shares and is not expected to dilute its holding through the IPO, according to sources.
The offering is likely to hit the market between Navratri and Diwali, placing the launch in the October-November window.
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The filing comes even as NSE is yet to receive SEBI's final settlement order in the long-running co-location matter, a regulatory overhang that has delayed the exchange's listing plans for years. NSE has not officially commented on the development.
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. Before that, it seems to be a good time to evaluate how NSE fares against BSE.
BSE's stock has seen a strong surge of 54.31% in the last 12 months and 58.13% year-to-date on the NSE, compared to the benchmark Nifty 50 itself which has fallen nearly 4% in one year and 8% year-to-date. NSE's unlisted shares currently trade at Rs 2,015 levels, according to Unlisted Arena data.
ALSO READ: NSE Vs BSE: How Does The IPO-Bound Exchange Stack Up Against India's Oldest Bourse?
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