NSE’s $2.5 Billion IPO: SBI, LIC to be Key Sellers, DRHP in 3 Months
The National Stock Exchange (NSE) is gearing up to file its draft IPO papers within three months, in what could be one of India’s largest public offerings worth around $2.5 billion. State Bank of India (SBI) and Life Insurance Corporation (LIC) are expected to be the primary sellers in this major offer-for-sale (OFS).
Key Details of the Planned IPO
According to sources familiar with the matter, the exchange is likely to file its Draft Red Herring Prospectus (DRHP) in the coming quarter. “The DRHP is likely to be filed in the next three months. The IPO is likely to be a pure offer for sale (OFS) of around $2.5 billion. SBI and LIC are likely to be the key sellers in the IPO,” one person said.
The person added that the exchange is also considering a discount for retail investors, potentially boosting public participation. NSE, SBI, and LIC did not offer official comments on the development.
Strong Financials and Long-Awaited Move
The mega IPO has been anticipated for years. In preparation, NSE strengthened its leadership in 2023 by appointing a Chief Financial Officer (CFO) and a company secretary.
The exchange’s robust financial performance underscores its strength:
- Net Profit: Rose 15.5% to ₹8,573.3 crore in FY23.
- Revenue: Grew 24% to ₹13,807.5 crore.
- EBITDA: Increased 21% to ₹9,053.7 crore.
Significance for Markets and Government
This IPO is poised to be a landmark event for multiple reasons:
Scale: At $2.5 billion, it would rank among India’s largest, surpassing recent major listings like Bharti Hexacom (₹4,275 crore) and Mankind Pharma (₹4,326 crore).
Disinvestment Boost: The offering would provide significant momentum to the government’s FY25 disinvestment target of ₹50,000 crore.
Market Milestone: NSE would become the first Indian exchange to list on domestic bourses. As the world’s largest derivatives exchange and second-largest in equity trades, its listing is a major test and endorsement of Indian capital markets.
Analysts estimate the exchange could be valued at around $20 billion, drawing close scrutiny from global investors.
