The National Stock Exchange of India advances with plans for a potentially record-breaking IPO, despite regulatory hold-ups and extensive international investor engagement aimed at securing support for the landmark listing.
The National Stock Exchange of India is pushing ahead with plans for what could become the country’s biggest stock market listing, even as the timetable has slipped. Bloomberg reported that the exchange has spent weeks meeting large global investors in Boston, New York, San Francisco, London, Singapore and Hong Kong as it builds support for the offer. Among the institutions said to have taken part were BlackRock, Capital Group, GQG Partners, Janus Henderson and Allspring Global Investments.
The delay appears to stem from changes to the selling shareholder roster, including the addition of SBI Capital Markets, according to Bloomberg. People familiar with the process said that once the prospectus changes, regulators require a 21-day public comment period, which has pushed the likely launch into the second half of September. NSE had earlier expected approval from the Securities and Exchange Board of India by early August.
NSE filed its draft papers in June for an offer that is entirely an offer for sale, meaning no new shares will be created and the proceeds will go to existing holders. NDTV said the exchange is planning to sell as many as 14.89 crore shares, or about 6 per cent of the company, with State Bank of India among the sellers. Moneycontrol reported that NSE has appointed 20 merchant bankers for the transaction, while other reports have put the expected size of the issue at about ₹30,000 crore.
At the top end of the marketed range, Bloomberg said NSE would rank sixth globally by market value among exchange operators, ahead of Nasdaq and just behind London Stock Exchange Group. CME Group and Intercontinental Exchange remain the two largest listed exchange groups, at about $97 billion and $86.9 billion respectively, Bloomberg reported. The size, valuation and timing of the sale could still change before launch.
Disclaimer: This article is intended to inform and educate, not to recommend or endorse any financial product, investment or strategy. Please consider your own financial circumstances and seek professional advice where appropriate before making financial decisions.
