National Stock Exchange (NSE) IPO’s issue size may shrink to nearly 3,000 crore to 5,000 crore, with the offer for sale (OFS) likely to be cut to 5.2-5.5 per cent, from the 6 per cent planned earlier, as some shareholders have backed out of the sale, people familiar with the matter told PTI on Wednesday. With this, the OFS--which was estimated at around Rs 30,000 crore-- could come down to Rs 25,000-27,000 crore.
With this size, NSE may miss out on becoming India's largest public offering ever. Hyundai Motor India's IPO, at Rs 27,870 crore, is the current record.
As per the news agency, the reason for reducing the size of the OFS is that some shareholders are reluctant to sell during the IPO, believing they can get a better valuation by selling their stake later. The sources stated that NSE wants to make the issue more attractive to retail investors, with pricing designed to provide greater participation and benefits to smaller investors in the OFS.
NSE: Expected Launch Date, Price Band
The IPO price band is expected to be in the range of Rs 1,700-1,785 per share, against an earlier estimate of Rs 2,000 per share.
According to PTI, the NSE IPO is likely to open for public subscription on September 18 and close on September 22. Meanwhile, the shares are likely to be listed on September 25, sources stated. The listing is targeted before the ''Pitru Paksha'' period that begins on September 26.
Who Are Selling Stakes
As per the draft papers, the NSE's IPO is an entire OFS of up to 14.89 crore shares. The existing shareholders will roughly offload 6 per cent of the exchange's paid-up capital. As it is an entire offer for sale, proceeds will go to stakeholders instead of the company.
State Bank of India and MS Strategic (Mauritius) Limited will offload up to 2.48 crore shares and 1.60 crore shares, respectively.
Who Are Offloading Stakes?
Shareholder | Shares to Sell |
|---|---|
State Bank of India | 2.48 crore |
MS Strategic (Mauritius) Limited | 1.60 crore |
Canada Pension Plan Investment Board | Not specified |
Aranda Investments (Mauritius) Pte Ltd | Not specified |
Bank of Baroda | Not specified |
Stock Holding Corporation of India Ltd | Not specified |
General Insurance Corporation of India | Not specified |
The New India Assurance Company | Not specified |
National Insurance Company | Not specified |
United India Insurance Company | Not specified |
NSE IPO: SEBI Approval
NSE, whose listing plan has been held up since 2016 by regulatory scrutiny and legacy legal issues, received SEBI’s final observation on September 4. The NSE submitted the draft paper of the proposed public issue to the market regulator in June. Post-listing, NSE will be among India's 10 most valuable companies by market capitalisation.
(With Inputs From PTI)