India’s largest stock exchange, the National Stock Exchange (NSE), filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) on 17 June for a proposed IPO estimated at around ₹30,000 crore. Structured entirely as an Offer for Sale (OFS), the issue is expected to become the largest IPO in Indian market history.
Ahead of the public issue, Life Insurance Corporation of India (LIC) was the largest shareholder with a 10.72% stake, holding 26.53 crore shares. Other key shareholders include Aranda Investments (Mauritius) Pte Ltd with 11.25 crore shares (4.54%), Stock Holding Corporation of India with 11 crore shares (4.44%), and SBI Capital Markets with 10.73 crore shares (4.33%).
The IPO comprises the sale of up to 14.89 crore equity shares, representing nearly 6% of NSE’s paid-up equity capital. As the issue is purely an OFS, NSE will not receive any proceeds from the offering, with all sale proceeds accruing to the existing shareholders. The price band for the issue is yet to be announced.
The offering is being managed by a consortium of 20 book-running lead managers, including Kotak Mahindra Capital, Morgan Stanley, HSBC, SBI Capital Markets, JPMorgan, Citi, ICICI Securities, Axis Capital, JM Financial and HDFC Bank. MUFG Intime India has been appointed as the registrar to the issue.
Here are some of the key risks listed by the company in its Red-Herring Prospectus (RHP):
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