NSE to be listed: 10 things to know about the biggest IPO in past 6 years

NSE will also be listing abroad

The National Stock Exchange of India (NSE) filed its draft prospectus for a Rs 10,000-crore Initial Public Offer (IPO) of equity.  It will be an offer for sale (OFS) of 111.4 million equity shares, 22.5% of the exchange’s post offer paid-up equity capital.

The IPO comes juts as the bourse’s managing director and chief executive, Chitra Ramkrishna, resigned earlier this month, citing personal reasons. Her tenure was to end in March 2018.

Here are the important things to know about the IPO:

1) At an expected valuation of Rs 40,000-45,000 crore, the issue size could be Rs 9,000-10,125 crore, the highest since the Coal India IPO of Rs 15,000 crore in 2010.

 

2) Major shareholders are Life Insurance Corporation, with a 12.5% stake, and Gagil FDI, Aranda Investments and SAIF II SE Investments, each holding 5%.

3) A few months earlier, Mauritius-based Veracity Investments had acquired a 5% stake in the bourse from  State Bank of India for Rs 911 crore, valuing the exchange at Rs 18,200 crore. 

4) The OFS will give existing shareholders a chance to exit, and most shareholders have opted for a partial exit. 

5) The top-selling foreign shareholders are Aranda, SAIF Investments, GAGIL FDI, Norwest Venture Partners, Citigroup Strategic Holdings and GS Strategic Investments. Major domestic shareholders doing so are SBI, SBI Capital, IFCI, Bajaj Holdings and Bank of Baroda. Tiger Global Five Holdings, which has 3% stake, is offering all its shares.

6) The IPO is not likely to benefit employees directly, as the company does not run an Employees Stock Option Plan scheme. 

7) NSE's board of directors has also given their nod to list the exchange abroad. It had said the draft prospectus would be filed by April.

8) NSE has appointed Citigroup Global Markets, JM Financial Institutional Securities, Kotak Mahindra Capital and Morgan Stanley India as joint global coordinators to manage its IPO. Cyril Amarchand Mangaldas will be the legal advisor. HDFC Bank, ICICI Securities, IDFC Bank and IIFL Holdings are the lead managers. 

9) BSE, its rival and Asia's oldest bourse, has already filed a draft prospectus with the markets regulator for a Rs 1,200-crore IPO. 

10) NSE was ranked first among exchanges globally in terms of stock index options and currency options trading volumes in 2015, according to the World Federation of Exchanges.