NSE Files Updated IPO Papers with SEBI as Issue Size Trims to ₹23,000 Crore on Scaled-Back OFS

The National Stock Exchange of India (NSE) has filed an updated draft red herring prospectus (UDRHP) with the Securities and Exchange Board of India (SEBI), marking the final procedural leg before launching its long-awaited public issue. The issue size is now projected to be trimmed to around ₹22,500 crore to ₹23,000 crore, down from the ₹30,000 crore estimated in its draft red herring prospectus (DRHP) filed in June.

The reduction in the overall issue size is driven by institutional shareholders electing to scale back the quantum of shares offered through the offer-for-sale (OFS) component. The entire issue is structured as an OFS, with no fresh capital being raised by the exchange itself.

Revised Issue Structure and OFS Dilution

Under the updated draft papers, selling shareholders plan to offload approximately 12.64 crore shares, which accounts for nearly 5.25% of the exchange's paid-up equity capital. This is a revision from the original proposal of offloading up to 14.89 crore shares, which represented about 6% of total equity.

Key Shareholder Participation Details:

• State Bank of India (SBI): SBI and its associate entities remain the largest selling shareholders in the OFS, offering up to 2.48 crore equity shares.
• Institutional Sellers: Public-sector insurance firms and global investment bank Morgan Stanley have reduced their respective selling quotas in the revised filing.
• Life Insurance Corporation of India (LIC): LIC, among the largest domestic institutional backers of NSE, has decided against tendering its equity in the issue.

Market Impact and Listing Milestones

At the original ₹30,000 crore estimate, the bourse's market debut was poised to surpass Hyundai Motor India's ₹27,870 crore offering as the country's largest-ever IPO. Following the revision to approximately ₹23,000 crore, Hyundai Motor India will retain the top spot in the interim.

Market sentiment surrounding the bourse remains elevated. In the grey market, NSE shares were commanding a premium of around ₹255 per share.

The exchange is targeting to open the issue for anchor investors in mid-September, with final listing slated for the fourth week of September. The formal launch clears the final overhang for domestic investors awaiting direct equity participation in India's premier stock exchange.

Tags: National Stock Exchange SEBI State Bank of India Morgan Stanley Capital Markets IPO