NSE IPO update: Listing-bound exchange pegs valuation? Expected price band, IPO timeline & more

IPO-bound National Stock Exchange of India (NSE) is seeking a valuation of as much as Rs 5.26 lakh crore ($55 billion), in its planned initial public offering, according to a Bloomberg report that cited people familiar with the matter. The operator of the world’s largest derivatives exchange by trading volume has marketed its shares at Rs 2,000 to Rs 2,100 apiece during meetings with potential investors, the report said.

According to Bloomberg, NSE has completed most of its global roadshow, with meetings in the Middle East still pending. The people cited in the report said deliberations are continuing and the details of the deal may change. An NSE representative declined to comment beyond reiterating that the company has filed a draft prospectus with India’s market regulator.

Bloomberg reported that India’s largest stock exchange held investor meetings in Boston, New York, San Francisco, London, Singapore and Hong Kong. The meetings involved about 120 large global investors, including BlackRock, Capital Group, GQG Partners, Janus Henderson Group Plc and Allspring Global Investments, the people said.

NSE had been expecting approval from the Securities and Exchange Board of India (SEBI) for its draft prospectus by early August, but that timeline has been pushed back by about three weeks because of changes to the list of selling shareholders, including the addition of SBI Capital Markets, according to the report.

The people said changes to the IPO documents require a 21-day period for public feedback. The IPO is now expected to launch in the second half of September. The exchange filed its draft papers in June for an offering made up entirely of secondary share sales. Existing shareholders plan to sell as many as 14.89 crore shares, about 6 per cent of the company, according to the filing.

At the top end of the marketed range, NSE would rank sixth by market value among global exchange operators, narrowly behind London Stock Exchange Group and just ahead of Nasdaq, Bloomberg reported. CME Group and Intercontinental Exchange are currently the top two at about $97 billion and $86.9 billion respectively.

NSE has appointed 20 banks for the share sale, including Kotak Mahindra Capital, JM Financial, Morgan Stanley, HSBC Holdings and Citigroup. The people cited by Bloomberg said the size, valuation and timing of the offering could still change.