NSE Targets Rs 7 Lakh Crore Valuation Mark India’s Biggest Public Listing

The National Stock Exchange (NSE) is looking at a valuation of Rs 6-7 lakh crore ($65 billion to $75 billion) for its upcoming initial public offering (IPO).

Hence, the country’s largest stock exchange may give Indian stock market its largest IPO ever, surpassing Hyundai Motor India’s Rs 27,870 crore offering, according to a report by Business Standard.

The South Korean carmaker’s India arm got listed on the bourses in October 2024.

The proposed issue will be entirely an offer for sale (OFS), with existing investors expected to dilute 4.5-5 per cent of their holdings.

While the existing investors were expected to sell between 4.5 per cent and 5 per cent through the mega IPO.

"At a valuation of Rs 6 lakh crore to Rs 7 lakh crore, the issue size could range between Rs 28,000 crore and Rs 38,000 crore,” the report quoted an investment banker saying.

With a market capitalisation of Rs 18.88 lakh crore, petroleum giant Reliance Industries is the most valued listed entity.

It is followed by HDFC Bank at Rs 12.94 lakh crore, telecom major Bharti Airtel at Rs 10.20 lakh crore, country's largest lender State Bank of India at Rs 9.84 lakh crore, ICICI Bank at Rs 9.11 lakh crore and sofware benemoth Tata Consultancy Services at Rs 8.71 lakh crore.

According to the report by Business Standard, the IPO of NSE could be India's biggest but the fees to be paid to investment bankers is likely to be lower than Hyundai India's.

The automaker had paid about Rs 493 crore which was about 1.77 percent of the IPO size.

The stock exchange is expected to pay between Rs 300 crore to Rs 400 crore.

The company has roped in 20 banks to manage the IPO. Among them, four are global lenders and while the rest are domestic institutions.

Eight legal advisors have also been engaged for the listing process.