The National Stock Exchange of India (NSE) is reportedly seeking a valuation of up to $55 billion for its planned Initial Public Offering (IPO). This would position it as one of India's largest market listings. The shares are being marketed to potential investors at a price range of ₹2,000 to ₹2,100 apiece, which at the upper end would value the exchange at around ₹5.26 lakh crore.
The IPO is anticipated to launch in the second half of September. The offering will consist entirely of an Offer for Sale (OFS), meaning the NSE itself will not receive proceeds. Existing shareholders are looking to sell as many as 148.9 million shares, representing approximately 6% of the company. The exchange has appointed 20 banks to manage the sale. The IPO's launch was delayed by about three weeks due to changes in the list of selling shareholders.
NSE, which operates the world's largest derivatives exchange by trading volume, has completed most of its global roadshow, with meetings in the Middle East still pending. Approximately 120 global investors, including BlackRock, Capital Group, and GQG Partners, attended meetings across major financial centers such as Boston, New York, San Francisco, London, Singapore, and Hong Kong.
A significant hurdle for the IPO, a long-running regulatory matter with the Securities and Exchange Board of India (SEBI) concerning alleged governance lapses and unequal access for trading members, has made progress towards resolution. NSE has received in-principle approval from SEBI for a settlement, subject to a payment of $155.83 million. This settlement removes a major legal uncertainty surrounding the exchange ahead of its public listing.
At a $55 billion valuation, the NSE would become the sixth-most-valuable exchange operator globally, narrowly behind the London Stock Exchange Group Plc and ahead of Nasdaq Inc. This valuation underlines the scale of the IPO, which has garnered significant investor attention after years of delays. The sale of the 6% stake could raise approximately ₹315 billion, potentially surpassing Hyundai Motor Co.'s Indian unit's 2024 IPO as the country's largest to date.
