The National Stock Exchange (NSE) is planning to refile for a no-objection certificate (NOC) from the Securities and Exchange Board of India (SEBI) to move forward with its long-awaited initial public offering (IPO), which is expected to raise around Rs 30,000 crore. This decision was discussed during the exchange’s annual general meeting.
NSE’s IPO plans have been delayed due to regulatory issues, including the ongoing co-location case. Originally, NSE submitted a draft red herring prospectus (DRHP) in 2016, but SEBI returned it in 2019, requiring the exchange to address the co-location investigation first. The case is currently pending before the Supreme Court, with a hearing scheduled for September 3.
In June 2022, SEBI had rejected the listing application by NSE due to governance and operational lapses. When it starts the re-application process, this is expected to be India’s largest IPO ever so far, surpassing Life Insurance Corporation’s Rs 21,008 crore IPO in May 2022.
Shares of NSE are currently trading at ₹ 6,000 each in the unlisted market-a two-fold jump in value in a year-putting the market capitalization of the exchange at ₹ 3 lakh crore. If NSE goes ahead with the IPO and sells 10% equity, it would raise around ₹ 30,000 crore.
Key investors of NSE include Life Insurance Corporation at 7.2 percent, Stock Holding Corporation at 4.44 percent, SBI Capital Markets at 4.33 percent, and Temasek Holdings with 5 percent.
For the fiscal closed on March 31, 2024, NSE posted a net profit of ₹8,306 crore – up 13% compared with a year ago- while revenue jumped 25% at ₹14,780 crore.
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Source: ET
News Desk
