NSE IPO: The much-awaited National Stock Exchange’s initial public offering (NSE IPO) is all set to break the records of these two mammoth public offers – Hyundai Motor IPO and LIC IPO.
The NSE IPO is expected to raise around ₹30,000 crore, making it larger than the other two major public offerings. The Hyundai Motor India IPO, launched in October 2024, was valued at approximately ₹27,870 crore. Meanwhile, the Life Insurance Corporation of India (LIC) IPO, which entered the primary market in May 2022, raised more than ₹21,000 crore through its public issue.
Hyundai Motor IPO
India’s largest ever IPO opened for subscription on 15 October, 2024 and closed on 17 October.
The South Korean automaker offered its shares in a price band of ₹1,865– ₹1,960 apiece through its ₹27,870-crore mega IPO, making it the largest public issue in India at the time and surpassing LIC’s ₹21,000-crore IPO.
The IPO comprised entirely an offer for sale (OFS) of 14.2 crore shares, with the entire stake being offloaded by its parent company, Hyundai Motor Global.
Shares of Hyundai Motor India made a weak debut on the stock exchanges on October 22, listing at ₹1,934 on the NSE, a 1.32% discount to the IPO issue price of ₹1,960 per share.
The Indian subsidiary of the South Korean automaker received a muted response from retail investors during the IPO. However, robust demand from Qualified Institutional Buyers (QIBs) helped offset the tepid retail participation, with the QIB portion being subscribed 6.97 times, or nearly 700%.
Hyundai Motor India appointed Kotak Mahindra Capital Company Ltd., HSBC Securities & Capital Markets Pvt. Ltd., JPMorgan India Private Ltd., Citigroup Global Markets India Private Ltd., and Morgan Stanley India Company Pvt. Ltd. as the book-running lead managers for its IPO.
KFin Technologies Ltd. acted as the registrar to the Hyundai Motor India IPO.
LIC IPO
The Life Insurance Corporation of India (LIC) IPO opened for subscription on May 4, 2022, and closed on May 9, 2022. The ₹21,008.48-crore public issue was entirely an Offer for Sale (OFS), with the Government of India as the selling shareholder. The issue price was fixed within a band of ₹902– ₹949 per equity share.
LIC share price made a muted debut on the stock exchanges on May 17, 2022, with the stock listing at ₹872 per share on the NSE. This represented a discount of around 8% to the IPO issue price of ₹949 per share.
India’s largest IPO at the time concluded with the issue being subscribed nearly three times. The offering received strong participation from retail and institutional investors, while interest from foreign investors remained relatively subdued.
Axis Capital Ltd. acted as the book-running lead manager for the issue, while Kfin Technologies Ltd. served as the registrar to the IPO.
NSE IPO
The NSE IPO will comprise entirely an offer for sale (OFS) of up to 149 million equity shares by existing institutional shareholders. The issue represents around 6% of the National Stock Exchange’s paid-up equity capital, with no fresh shares being issued by the exchange.
While the final issue size and valuation are yet to be determined, market estimates peg the IPO at around ₹30,000 crore. At this size, NSE could command a market capitalisation of more than ₹5 lakh crore, potentially placing it among India’s top 10 most valuable listed companies by market value.
The proposed IPO would surpass the ₹27,859-crore issue of Hyundai Motor India and the ₹20,557-crore offering by Life Insurance Corporation of India (LIC), making it one of the largest IPOs in the Indian market.
The National Stock Exchange is likely to make its stock market debut in the week beginning September 21, according to a Reuters report The exchange is expected to commence the book-building process on September 11, which will help gauge investor demand and determine the final IPO price. The price band is likely to be announced around September 15, according to the report.
Bankers tracking the transaction expect NSE shares to be priced at around ₹2,000 apiece, broadly in line with their prevailing pre-listing grey-market levels. A formal price band is also expected to be announced around September 11, according to a PTI report.
Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.
