NSE IPO May Lose Some Heft, Offer Size Could Shrink To ₹25,000-27,000 Crore As Investors Trim OFS

New Delhi: The much-awaited National Stock Exchange (NSE) IPO could be smaller than initially planned, with some shareholders reportedly deciding to reduce their stake sale through the Offer for Sale (OFS) route.

The OFS could now comprise 5.2%-5.5% of NSE's equity, compared with the earlier proposal of 6%, people familiar with the development said.

As a result, the NSE IPO size could fall to ₹25,000-27,000 crore, from the earlier estimate of around ₹30,000 crore.

NSE May Miss India's Biggest IPO Tag

If the issue remains below ₹27,870 crore, NSE may not surpass Hyundai Motor India's IPO as India's largest public offering.

Some NSE shareholders are understood to have pulled back from the OFS in hopes of securing better valuations by selling their holdings later.

The IPO is entirely an OFS, meaning NSE will not receive any proceeds from the issue. Funds raised will go directly to selling shareholders.

NSE IPO Price Band May Be Lower

The NSE IPO price band is expected to be around ₹1,700-1,785 per share, lower than an earlier estimate of about ₹2,000.

The pricing is reportedly being structured to encourage greater retail investor participation.

The IPO is likely to open on September 18 and close on September 22, with NSE shares expected to list on September 25. The exchange is reportedly targeting a listing before Pitru Paksha begins on September 26.

Sebi Clears Long-Awaited NSE Listing

Sebi recently cleared NSE's public issue, marking a major breakthrough after its listing plans remained stalled for nearly a decade amid regulatory hurdles.

NSE had initially proposed an OFS of up to 14.89 crore shares, representing around 6% of its paid-up capital.

Major selling shareholders include State Bank of India, MS Strategic (Mauritius), Canada Pension Plan Investment Board, Bank of Baroda and several state-owned insurance companies.