The National Stock Exchange of India (NSE) is reportedly lowering the price range for its anticipated initial public offering (IPO) to 1,700 rupees to 1,785 rupees per share, a decrease from the initially marketed range of 2,000 rupees to 2,100 rupees. This adjustment could also see the exchange reduce the stake being offered to approximately 5.5% of the total equity capital, down from the original plan of 6%. This comes after some shareholders opted not to sell their stakes at the revised lower price.
The revised pricing strategy means that the sale of a 5.5% stake would likely raise around 243 billion rupees ($2.6 billion). This figure falls short of the 279 billion rupees raised by Hyundai Motor India Ltd. in 2024, which currently stands as India's largest-ever IPO. Consequently, the NSE's valuation at the top of the proposed range would be approximately 4.42 trillion rupees ($46.6 billion), a significant drop from the previously targeted valuation of as much as 5.26 trillion rupees. The reduction in deal size is attributed to concerns about the Indian primary market's capacity to absorb multiple large deals concurrently, especially with Jio Platforms Ltd. also preparing for a potentially major IPO.
The NSE, which operates the world's largest derivatives exchange by trading volume, is expected to announce the final price range this week, with the IPO subscription window slated to open in the week of September 14. Deliberations are ongoing, and the specific details, including the price range and timing, could still change. The exchange filed its draft prospectus in June for an offering consisting entirely of secondary shares, which was approved by India's market regulator on September 4. Prominent shareholders such as Morgan Stanley, Temasek Holdings Pte, State Bank of India, and General Insurance Corp. of India are among those selling stakes in the offering.
This reduction in the IPO price band has implications for existing shareholders and those who bought unlisted shares. For instance, State Bank of India, Bank of Baroda, GIC Re, and New India Assurance, which are listed entities planning to sell their stakes, will receive less proceeds than initially expected. LIC, NSE's largest shareholder, is anticipated to retain its stake. The overall first-time share sales in India have reached nearly $10 billion so far in 2026, compared to over $20 billion in each of the preceding two record-setting years.
