NSE Targets Up To ₹5.26 Lakh Crore Valuation For IPO; Listing Likely In September

The National Stock Exchange of India (NSE) is targeting a valuation of as much as Rs 5.26 lakh crore ($55 billion) through its proposed initial public offering, potentially making it one of India's biggest stock market listings, Bloomberg reported.

According to the report, people familiar with the matter said NSE has been discussing a price band of Rs 2,000-Rs 2,100 per share with prospective investors. The exchange has completed most of its international roadshow, with meetings in the Middle East still pending.

NSE has held investor meetings in major financial centres including Boston, New York, San Francisco, London, Singapore and Hong Kong. Around 120 large global investors reportedly participated, including BlackRock, Capital Group, GQG Partners, Janus Henderson Group and Allspring Global Investments.

NSE IPO Could Become India's Biggest-Ever Listing

At the upper end of the proposed valuation range, NSE would have a market value of around $55 billion. That would place it among the world's most valuable exchange operators, ranking sixth globally and putting it narrowly behind London Stock Exchange Group and ahead of Nasdaq.

CME Group and Intercontinental Exchange currently rank among the largest global exchange operators, with market values of roughly $97 billion and $86.9 billion, respectively.

NSE's IPO will consist entirely of an offer for sale, meaning existing shareholders will sell their holdings rather than the company issuing new shares. According to its draft prospectus, shareholders could offer up to 148.9 million shares, equivalent to around 6% of the exchange.

At a $55 billion valuation, the 6% stake could generate approximately Rs 31,500 crore, potentially surpassing Hyundai Motor India's Rs 27,870 crore IPO in 2024, currently the country's largest IPO.

IPO Timeline Delayed Over Shareholder Changes

The exchange had initially expected regulatory clearance from the Securities and Exchange Board of India (SEBI) by early August. However, the approval timeline has reportedly been pushed back by around three weeks following changes to the list of selling shareholders, including the addition of SBI Capital Markets.

The changes require a 21-day period for public comments on the revised IPO documents. As a result, the NSE issue is now expected to hit the market in the second half of September.

NSE has appointed 20 investment banks to manage the offering, including Kotak Mahindra Capital, JM Financial, Morgan Stanley, HSBC and Citigroup. The exchange declined to comment on the reported valuation and pricing discussions, reiterating that it has filed its draft prospectus with the market regulator.