NSE files draft IPO papers nearly a decade after its first attempt

The National Stock Exchange filed its draft red herring prospectus (DRHP), the first IPO document, with the market regulator. This revived a listing plan first tried almost ten years earlier. The draft proposes a sale of up to 148.9 million shares of ₹1 face value, close to 6% of paid-up capital. All the shares come from existing shareholders, so the exchange receives nothing. Industry estimates put the issue at about ₹30,000 crore.

Sellers named in the draft include State Bank of India, MS Strategic (Mauritius), Canada Pension Plan Investment Board, Aranda Investments, Bank of Baroda and several state-run insurers. SBI's planned sale would cut its stake from 3.23% to about 2.2%. LIC, the largest shareholder with 10.72%, chose not to sell. A group of 20 investment banks is managing the issue.

Why it matters for unlisted-share investors

NSE has been one of the best-known shares in India's unlisted market for years. Its draft prospectus gives public detail on shareholders, sellers and financials that unlisted-market buyers previously had to piece together from other sources.

Source: Business Standard