NSE seeks NoC from Sebi to launch IPO: Has this moved shares in unlisted market?

The National Stock Exchange of India (NSE) restarted the process of its long-pending public offer, according to two sources with direct knowledge of the matter. The leading stock exchange has reapplied for a 'no-objection' certificate (NoC) with the capital markets regulator Securities and Exchange Board of India (Sebi) for the IPO, reported Reuters, citing sources.
 

NSE' IPO, if approved, could be one of the largest primary market issue in the country. NSE is the world's largest derivatives exchange by volume, which had applied for a listing in 2016, but faced a long-running case over equitable access for its trading members. In April 2019, Sebi fined NSE Rs 1,100 crore for not ensuring equitable access and returned its listing documents.
 

Despite the IPO buzz, shares of NSE have remained mostly unchanged in the unlisted market. Dealers active in the space suggest that larger lots are trading at Rs 5,000-5,500 per share while smaller lots are being traded for Rs 6,000-6,200 apiece. However, buying unlisted shares of NSE takes a lot of regulatory approvals.
 

Sandip Ginodia, Founder and CEO of Kolkata-based Altius Investech there, unlike expectations, is not much moved in the NSE's unlisted share price after this news. Before the IPO, NSE will have to overcome all the pending litigation as it is the largest exchange and a leading financial infrastructure player in the country.
 

Dinesh Gupta, Co-founder of NCR-based boutique firm UnlistedZone said that this is just another step towards IPO. The issue may actually take another one year to be launched. NSE's IPO is not sighted in the near-term but yes there will be a strong craze for it.
 

Brokerage firm IIFL said NSE has secured the SEBI approval for increasing share capital to issue bonus shares in 4:1 ratio. With the shareholders’ approval, the company would be able to issue bonus shares now. On the co-location case, the matter is pending in the Supreme Court – the last hearing happened in November 2023, the next hearing is scheduled on September 3. 

"But given the delays it is very difficult to given any timelines for the completion of the case. On the IPO, the uncertainty continues as company said it is not in a position to share any timelines," said IIFL.


The current valuations of the NSE stands close to Rs 2.7 lakh crore in the unlisted market. Life Insurance Corporation of India State Bank of India Canada Pension Plan Investment Board, Tiger Global and Morgan Stanley are among the current stakeholders in the NSE, who may offload stake in the NSE IPO, said Reuter's report
 

NSE may raise around Rs 28,000-30,000 crore from its IPO, which will be the largest primary offering in the Indian market after LIC (Rs 21,000 crore) and Paytm (Rs 18,300 crore). NSE reported 39 per cent year-on-year growth in consolidated profits at Rs 2,56.7 crore in the June 2024 quarter, largely driven by the options trading market. Revenue rose 25 per cent YoY to Rs 14,780 crore.