NSE invites 15 banks to pitch for its upcoming IPO
NSE invites 15 banks to pitch for its upcoming IPO
NSE seeks top underwriters after SEBI clearance, eyeing a potential ₹23,000 crore offer for sale with a mid-March pitching process and an April DRHP.
The National Stock Exchange has invited as many as 15 investment banks to pitch for managing its proposed IPO, with JPMorgan Chase, Kotak Mahindra Capital Company, JM Financial, Axis Capital and ICICI Securities among those in contention. The pitching process is expected to begin by mid-March, and the exchange is likely to file its draft red herring prospectus in April. Rothschild is assisting NSE in selecting lead bankers, legal counsel and other intermediaries for the IPO. The offer for sale means existing shareholders may dilute their stake, while the exchange itself will not receive fresh funds.
In the unlisted market, NSE is valued at about ₹5 lakh crore. Based on unlisted prices, the IPO could raise roughly ₹23,000 crore. On a trading day, NSE shares in the unlisted market were around ₹2,035 per share. The IPO plan follows SEBI’s no-objection certificate, ending a regulatory impasse that had stalled the listing for nearly a decade. Earlier this year, NSE’s board approved the IPO and appointed a six-member panel to facilitate the process.
Existing investors form a significant portion of the stake. Life Insurance Corporation of India remains the largest holder with about 10.72%, followed by Aranda Investments Mauritius Pte at around 4.54%, Stock Holding Corporation of India Ltd at 4.44%, SBI Capital Markets Ltd at 4.33%, and Veracity Investments Ltd at about 3.93%. It isn’t clear which entities will offer shares in the IPO, but the market expects an approximate 4-4.5% dilution of NSE’s total equity from the exit of current shareholders.
The IPO structure will be an offer for sale, aligning with NSE’s aim to list after a long regulatory journey. While the deal will unlock value for existing investors, it also marks a watershed moment for India’s exchange ecosystem as the market awaits the subsequent steps in the regulatory and listing timeline.
