Source : INDIA TODAY NEWS
The National Stock Exchange (NSE) is seeking a valuation of as much as $55 billion for its planned initial public offering (IPO), which could make it one of India’s biggest market listings, reported Bloomberg.
The exchange has been marketing its shares at Rs 2,000–2,100 apiece during meetings with potential investors, the report said. At the upper end of this price range, NSE’s valuation could reach around Rs 5.26 lakh crore.
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NSE, which operates the world’s largest derivatives exchange by trading volume, has completed most of its global roadshow, with meetings in the Middle East still to be completed, according to the report.
The IPO is now expected to be launched in the second half of September after regulatory approval was delayed by around three weeks following changes to the list of selling shareholders.
NSE IPO COULD BE VALUED AT $55 BILLION
At the top end of the marketed price range, NSE would command a valuation of around $55 billion, or approximately Rs 5.26 lakh crore.
This would place the Indian exchange at sixth among global exchange operators by market value, Bloomberg reported.
The proposed valuation underlines the scale of the NSE IPO, which has been closely watched by investors after years of delays and regulatory hurdles.
NSE has not yet announced a final IPO price or launch date.
NSE IPO WILL BE ENTIRELY AN OFFER FOR SALE
The NSE IPO will consist entirely of an offer for sale (OFS), meaning the exchange itself will not receive funds from the issue.
Existing shareholders are planning to sell as many as 14.89 crore shares, equivalent to around 6% of the company.
NSE has appointed 20 banks to manage the proposed share sale, according to the report.
The final size of the offering and the list of shareholders participating in the sale could determine the final valuation and structure of the IPO.
WHY HAS THE NSE IPO BEEN DELAYED?
The IPO is now expected to hit the market in the second half of September after regulatory approval was delayed by around three weeks.
The delay followed changes to the list of selling shareholders, according to Bloomberg.
However, NSE has also made progress in resolving a long-running regulatory matter that had been a major overhang ahead of its proposed listing.
NSE had earlier said that the Securities and Exchange Board of India (Sebi) had granted in-principle approval to settle certain past regulatory lapses, subject to a payment of $155.83 million.
SEBI SETTLEMENT REMOVES KEY IPO OVERHANG
NSE’s auditor said in the exchange’s results report that the bourse had received a letter from Sebi accepting its proposed settlement offer in the long-running case.
The matter involved allegations of governance lapses and the exchange’s failure to provide equitable access to all trading members.
The settlement is significant for NSE as it prepares to go public because it removes one of the biggest legal uncertainties surrounding the exchange.
With most of its global roadshow completed and the regulatory issue moving towards resolution, investor attention will now shift to the final IPO timeline, issue price and valuation.
WHAT INVESTORS NEED TO KNOW ABOUT NSE IPO
NSE is currently marketing its shares at Rs 2,000–2,100 apiece, with the exchange seeking a valuation of up to $55 billion, or around Rs 5.26 lakh crore at the top end.
The IPO is expected to launch in the second half of September, although the final date has not been announced.
The issue will be entirely an offer for sale, with existing shareholders looking to sell up to 14.89 crore shares, or about 6% of NSE.
The exchange has appointed 20 banks to manage the issue, while the Sebi settlement has helped clear a major regulatory hurdle ahead of the proposed listing.
(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)
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SOURCE :- TIMES OF INDIA
