The National Stock Exchange of India is eyeing a record-breaking valuation of up to 5.26 trillion rupees ($55 billion) in its long-anticipated initial public offering, signalling a major milestone for India’s financial markets and enabling existing shareholders, including major institutions, to sell stakes amid high investor interest.
National Stock Exchange of India Ltd is seeking a valuation of as much as 5.26 trillion rupees, or $55 billion, in its long-awaited initial public offering, according to people familiar with the matter. Bloomberg reported that the exchange has been marketing shares at 2,000 rupees to 2,100 rupees each in meetings with prospective investors, with most of its global roadshow now complete and talks in the Middle East still to come.
The planned flotation would rank among India’s biggest and, if completed at that level, would put the exchange among the country’s most valuable listed companies. Livemint reported that the offering is expected to be an offer for sale, meaning existing shareholders would sell stock rather than the exchange raising fresh capital. That structure would allow early backers, including major domestic and foreign institutions, to trim holdings while giving the market a long-awaited chance to own part of the bourse.
Interest from large investors has reportedly been strong. GoodReturns and Precize said institutions such as Life Insurance Corporation of India, State Bank of India, Temasek Holdings, Canada Pension Plan Investment Board and Morgan Stanley are among the names expected to participate. Precize also said the exchange has a large and fragmented shareholder base, with more than 177,000 investors, which makes the transaction unusually complex.
The listing has been years in the making. NSE first filed papers in 2016, but the process was slowed by regulatory scrutiny from the Securities and Exchange Board of India, while rival BSE went public in 2017. Marketscreener reported that the exchange has now filed draft IPO documents, and Livemint said the board has approved the plan, although timing remains subject to regulatory clearance and the final prospectus.
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