The National Stock Exchange (NSE), India’s largest stock exchange, on Monday said it will file the draft prospectus for domestic listing by January 2017. In a media release the exchange said it will also undertake overseas listing simultaneously and prospectus for the same would be filed by April 2017.
“Further, to accelerate the listing procedures, the board has re-constituted the current listing committee as an empowered sub-committee of the board,” NSE said in the release.The decisions related to listing were taken during the last meeting of the board of directors on June 23, 2016.
As per the current shareholding pattern of NSE, Life Insurance Corporation of India (LIC) holds a little more than 12% while public lender State Bank of India(SBI) owns 10.19%. IFCI holds 5.55% of stake in NSE, data showed.
Global Private Equity (PE) firm Tiger Global owns 3% of the stake in the NSE while Norwest Venture Partners hold 2.11%. In total, Foreign Portfolio Investors(FPIs) own 9.29% on the exchange.
The NSE was valued at `17,550 crore in September 2015 when IFCI, one of the existing shareholders, sold 1.5% of its stake for `263.25 crore. For the year ended in March 2016, net profit of the exchange fell 44% to `439.3 crore from `779.7 crore in FY15. This was after new regulations mandated exchanges to set aside 25% of their annual profits in a separate fund to guarantee the settlement of trades executed through them. Hence,its earnings per share (EPS) went up to `208.3 from `198.2 in FY15 even though reported profit declined.
As per market sources, Bombay Stock Exchange (BSE) — NSE’s nearest competitor — is valued at `4,000 crore. The net profit of the BSE for FY16 stood at `94.74 crore, while the EPS of the exchange was `88.6.
As per the current shareholding pattern of NSE, Life Insurance Corporation of India (LIC) holds a little more than 12% while public lender State Bank of India (SBI) owns 10.19%. IFCI holds 5.55% of stake in NSE, data showed.
The listing of NSE comes after the exchange was under pressure from the existing investors to go public. In 2015, it had approached Securities and Exchange Board of India (Sebi) to permit listing of exchanges. In January 2016, Sebi gave its nod for the listing of stock exchanges. However, as per the guidelines, self listing was not allowed. The new guidelines also provided conditions to ensure compliance that every shareholder be Fit and Proper, all applicant in the IPO or offer for sale will be required to make declaration to this effect at the time of making application.