SEBI approves NSE IPO: Markets regulator SEBI on Friday cleared the National Stock Exchange’s (NSE) initial public offering. As part of the process, NSE is expected to file an updated draft red herring prospectus (DRHP) next week. The approval paves the way for the country’s largest bourse to make its long-awaited stock market debut after nearly a decade of regulatory delays.
According to the Processing Status of Draft Offer Documents released on Friday, NSE obtained SEBI’s final observations on September 4.
NSE had filed its draft papers with SEBI in June. Receiving the regulator’s observations is an important step in the IPO process, following which the exchange can proceed with further preparations for the public issue, subject to applicable regulatory requirements.
The development marks a major step for NSE, whose listing plans have remained stalled for nearly a decade amid regulatory hurdles, including the co-location controversy.
The proposed IPO will be entirely an offer for sale (OFS), with 14.89 crore shares to be sold by existing shareholders. Collectively, shareholders will divest nearly 6% of their stake in the exchange, according to the DRHP.
Among the key selling shareholders, State Bank of India plans to offload up to 2.48 crore shares, while MS Strategic (Mauritius) Limited will sell 1.60 crore shares.
According to PTI, the IPO could be valued at around Rs 30,000 crore, implying a market capitalisation of more than Rs 5 lakh crore for NSE. If launched at that size, the offering would surpass Hyundai Motor India’s Rs 27,870 crore IPO launched in October 2024, currently the largest IPO in India.