National Stock Exchange of India Ltd. (NSE), the operator of the world's largest derivatives exchange by trading volume, is initiating an Initial Public Offering (IPO) with a potential valuation reaching 5.26 trillion Indian rupees, equivalent to 55 billion US dollars, according to sources familiar with the matter.
During meetings with potential investors, the exchange offered its shares in a price range of 2,000 to 2,100 rupees per share. NSE has completed most of its global tour, leaving meetings in West Asia unfinished. An NSE representative declined to comment, other than confirming the submission of the draft prospectus to the Indian market regulator.
Overview of Investor Meetings and Timelines
The exchange, which is India's largest stock exchange, held a series of meetings with investors in cities such as Boston, New York, San Francisco, London, Singapore, and Hong Kong. These meetings attracted about 120 major global investors, including BlackRock Inc., Capital Group, GQG Partners, Janus Henderson Group Plc, and Allspring Global Investments.
Initially, NSE expected approval from the Securities and Exchange Board of India for its draft prospectus by early August, but this deadline has been postponed by approximately three weeks. The reason cited was changes in the list of selling shareholders, specifically the addition of SBI Capital Markets Ltd. Changes to the IPO documentation require a 21-day period for public feedback.
The IPO is now expected to launch in the second half of September. If the upper limit of the stated range is reached, NSE will rank sixth in market capitalization among global exchange operators, positioned close to the London Stock Exchange Group Plc and slightly ahead of Nasdaq Inc.
Offering Details and Financial Expectations
At a valuation of 55 billion US dollars, the sale of a 6% stake in NSE could raise approximately 315 billion rupees, exceeding the 278.7 billion rupees raised by Hyundai Motor Co.'s division in India in 2024, which was the largest IPO in the country to date.
The exchange submitted the draft prospectus in June for a placement that will consist exclusively of secondary share sales. According to the submitted document, existing shareholders intend to sell up to 148.9 million shares, representing approximately 6% of the company. To conduct this sale, NSE engaged 20 banks, including Kotak Mahindra Capital Co., JM Financial Ltd., Morgan Stanley, HSBC Holdings Plc, and Citigroup Inc.