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National Stock Exchange has appointed Rothschild &Co as the independent adviser to manage its upcoming ₹22,500-crore IPO. The France based financial advisory firm will select book running legal counsels, legal managers and aim to oversee appointment of bankers.
After a long delay there is finally some concrete move from the brand side. This move signals that the brand is serious about its listing plans.
If you have been following the NSE IPO, this market buzz would excite you to know what is in store now?
Let us read ahead.
Big Development:NSE IPO Panel Picks Rothschild
NSE invited invitations from different big firms that could guide it for the IPO process. The selection was rigorous and the evaluation was based on the technical skills understanding how good they are and what is the cost.
Why is this important?
By hiring a prestigious firm like Rothschild, NSE exhibits high professionalism.
Some Stats on NSE
NSE is the third largest player in the equity segment in number of traders.
Q3 ending December, NSE confirmed a decline in its consolidated net profit to reach ₹ 2,408 crore.
There was also a 10% dip in revenue from operations of ₹3,925 crore for NSE.
Rothschild Mandate: What Will They Actually Do?
The France-based financial advisory will not be the underwriter but act as an advisor. Their role is to pick the right team to launch an IPO.
1. Coordination:
Rothschild is a bridge between NSE and different agencies, to handle different documentation and consolidating feedback.
2. Picking the Bankers:
The primary job is to advise NSE is to select the merchant bankers. These will be the people who will manage the paperwork and selling of shares.
3. Creating a fair evaluation process:
The advisor will ensure operations that are free from conflict of interest.
NSE: Reconstituted IPO Committee
NSE has not just reconstituted the external team as their financial advisor, they have also strengthened their internal team. The committee is packed with the experienced leaders:
Tablesh Pandey: Being a chairperson of the committee, Mr. Pandey will act as Public Interest Director at NSE.
Ashish Kumar Chauhan: He is the CEO and the man who is responsible for cleaning the image of NSE and pursuing the process of listing.
Other Key Members: The panel include industry veterans like Srinivas Injeti, Girish Chandra Chaturvedi, and Prof. Mamta Biswal.
Understanding “Offer for Sale”
NSE IPO will be pure Offer For Sale (OFS)
The company is not raising new capital, instead they are asking the existing shareholders to sell their shares to the public. Early investors include names like LIC, State Bank of India, and Temasek. They want to sell their shares to book some profits. The OFS structure allows them to do so.
NSE does not need to raise cash because it is already a profitable company. It reports a quarterly profit of ₹2,408 crore.
Timeline: When will the NSE IPO Launch
The appointment of Rothschild gives us an idea of the process kickstart. The tentative phase will be:
Phase 1: Rothschild will pick the bankers and lawyers.
Phase 2: The bankers prepare the Draft Red Herring Prospectus (DRHP) to give all the details about the company in their document.
Phase 3: After evaluating DRHP, SEBI will approve the listing and the IPO will open for subscription.
Reports confirm that NSE is targeting its listing window by the end of 2026.
Conclusion
After a decade of waiting, the NSE IPO process looks on the countdown. The finish line is finally in sight now. As Rothschild will finalise bankers, we will get more details on share price and lot size. India’s one of the largest platforms is one step closer to becoming a listening company itself.
For details on other unlisted shares please visit Stockify.
FAQ
Does Rothschild do an IPO?
Rothschild is France based financial advisor that helps in structural decision making.
Which is the best IPO you can buy in NSE?
Some of the top performing IPOs to consider from NSE include Billionbrains Garage Ventures Ltd., Bharat Coking Coal Ltd, Pajson Agro India Ltd, and Mahamaya Lifesciences Ltd.
Is the NSE IPO worth buying?
Yes, it looks like the NSE IPO would be the most rewarding opportunity to invest.
