NSE Invites Investment Bankers To Pitch For IPO Management

The NSE IPO lead bankers' selection process has now formally begun. In this, the NSE will approach around 20 investment banks and nearly 10 legal firms while evaluating partners for the transaction. According to the Money Control, to present their pitches for advisory roles, investment banks and law firms are invited by NSE as NSE IPO lead Bankers.

Earlier this week, NSE initiated the groundwork for its proposed IPO by issuing an RFP (Request for Proposal). Previously, in the board meeting, NSE’s directors approved the plan of proceeding with the IPO through the OFS route 

SEBI's NOC TO NSE 

After a long delay of 10 years. NSE finally got a No Objection Certificate (NOC) from SEBI last month on 30th January.

Following the clearance, NSE board members approved the IPO and also assigned 6 IPO committee members in order to oversee the IPO process.

Also Read: Is the NSE IPO Coming In 2026?

NSE Strategic Offer for Sale (OFS)

The NSE IPO will be structured as an OFS, which includes major shareholders such as Life Insurance Corporation (LIC), State Bank of India (SBI), IDBI Bank, and global investor Temasek.

So, it means that there will be dilution of the portion of existing shareholders, whereas any fresh capital will not be raised from the issue by the NSE itself.

As per sources, the existing shareholders are likely to dilute around 4 - 4.5% of NSE’s total equity.
To ensure a fair selection process, Rothschild & Co. is serving as an independent advisor by NSE's IPO Committee.

NSE Valuation and IPO Size

NSE is currently valued at around Rs. 5 lakh crore in the unlisted market. On the basis of being dominant unlisted share prices, the NSE IPO could raise close to Rs. 23000 cr. This might be potentially one of the largest listings in India’s capital market. 

Currently, NSE Unlisted shares are trading around Rs 2048 per share in the unlisted market. Therefore, prices reflect that there can be strong investor expectations even before the NSE IPO process formally begins.

Who are the NSE IPO lead Bankers Selection?

Some of the leading global and domestic NSE IPO lead managers which are expected to bid are JPMorgan Chase, Kotak Mahindra Capital, JM Financial, Axis Capital and ICICI Securities. 

As per the sources, the pitching process is likely to start by mid-March, whereas NSE is preparing to file its draft red herring prospectus (DRHP) in April.

Hence, the presence of both international and domestic banks shows the scale and importance of the proposed NSE IPO. Now, it is expected to attract strong institutional interest.

Who are the key shareholders and potential sellers? 

The shareholder base of NSE includes several prominent institutional investors, led by Life Insurance Corporation of India (LIC), which owns roughly 10.72% of the exchange, making it its largest shareholder.

Other notable investors include Aranda Investments Mauritius Pte with a 4.54% holding, Stock Holding Corporation of India Ltd at about 4.44%, SBI Capital Markets with a 4.33% stake, and Veracity Investments, which owns close to 3.93%.

It remains unclear which of these investors will participate in the share sale.

How will the NSE IPO affect the investors? 

With the NSE IPO lead manager appointment and regulatory filings now falling into place, it confirms that the NSE IPO is possibly on track. Whereas the NSE’s dominant position in the market and strong cash flows could be an attractive long-term asset. 

As of now, the NSE IPO lead bankers selection process marking a important step for binging most anticipated IPO closer to reality.