India’s biggest stock exchange, the National Stock Exchange of India, is moving one step closer to its long-awaited IPO. In a major development, NSE has selected 20 merchant bankers and 8 law firms to manage its public issue.
This move has sparked fresh excitement in the market because the exchange is reportedly aiming for a massive valuation of around ₹5 lakh crore when it lists. If that happens, it could turn out to be one of the biggest IPOs in India’s history. So, what exactly is happening, and what does the latest NSE IPO status reveal about the exchange’s listing plans?
NSE Appoints 20 Merchant Bankers, Including 8 Law Firms
According to Moneycontrol, NSE has officially started preparations for its IPO by appointing several merchant bankers and advisors. These financial institutions will help the exchange with the entire listing process. In order to handle the NSE IPO process, it has appointed 20 merchant bankers, including 8 law firms that will guide the exchange through different stages of the listing.
Some of the major names include Kotak Mahindra Capital Company, JM Financial, Axis Capital, IIFL Capital Services, Motilal Oswal Investment Advisors, ICICI Securities, SBI Capital Markets, Nuvama Wealth Management, and HDFC Bank. Along with these domestic firms, global investment banks such as Morgan Stanley India, J.P. Morgan India, Citigroup Global Markets India, and HSBC Securities and Capital Markets India are also part of the advisory team.
The NSE IPO committee has also finalised other merchant bankers, including Avendus Capital, IDBI Capital Markets, 360 ONE WAM Limited, Anand Rathi Advisors Limited, DAM Capital Advisors Limited, Pantomath Capital Advisors, and Equirus Capital Private Limited. These institutions will help NSE with regulatory filings, documentation, marketing of the IPO, and execution of the public issue. These institutions will assist in documentation, regulatory approvals, marketing, and execution of the IPO.
Eight Law Firms To Support The NSE IPO Status
NSE has also selected eight law firms, apart from 20 merchant bankers. This will help to assist with the legal aspects of the NSE IPO, handling due diligence, documentation, compliance, and regulatory matters. The firms include Cyril Amarchand Mangaldas, Khaitan & Co, Latham & Watkins, Sidley Austin, AZB & Partners, S&R Associates, Shardul Amarchand Mangaldas & Co and Trilegal.
Other Key Intermediaries For NSE IPO Status
Apart from merchant bankers and law firms, NSE has also onboarded a few other companies to support the IPO process. MUFG Intime India has been selected as the registrar for the IPO. Other intermediaries involved include Makarand M. Joshi & Company, Manian & Rao, RBSA Advisors, Concept Communication, and Redseer Strategy Consultants.
These firms will help with valuation, communication strategy, compliance, and advisory services during the IPO process.
NSE IPO DRHP Filing Might Take 3-4 Months
According to NSE officials, once the merchant bankers are finalised, the next step is preparing the Draft Red Herring Prospectus (DRHP). This document contains key details about the company’s financials, risks, and IPO structure. Experts say it may take around 3-4 months to prepare and file the DRHP with the Securities and Exchange Board of India (SEBI).
NSE IPO Size May Reach Rs. 23,000 Crore
The proposed IPO is expected to be entirely an Offer For Sale (OFS). This means that existing shareholders will sell a portion of their shares. NSE itself may not raise fresh capital from the issue. Market estimates suggest that around 4-5% of NSE’s equity could be sold through the IPO. Based on the current NSE unlisted share price of around Rs 1997 per share, the total IPO size could be close to Rs 23,000 crore. Reports suggest that the NSE is targeting a valuation of nearly ₹5 lakh crore at its listing.
Additionally, a major roadblock for the NSE IPO was cleared earlier this year when the Securities and Exchange Board of India (SEBI) issued a No Objection Certificate (NOC) on January 30. This approval has allowed the National Stock Exchange of India to move ahead with its long-awaited listing plans.
Also Read: NSE India IPO Is 100% OFS, Not Listing On NSE: Ashish Chauhan
Why The NSE IPO Matters For Investors?
The possible listing of the NSE is likely attracting a lot of interest in the market, and there might be a few possible reasons:
First, NSE is India’s largest stock exchange in terms of trading volume. Secondly, if the IPO goes ahead, investors will finally get the opportunity to own shares of the exchange itself, something that has been talked about for many years.
Another reason is the expected size of the listing. If the exchange achieves the projected valuation of around ₹5 lakh crore, the IPO could become one of the biggest listings in India’s market history. Because of all these factors, market participants and investors are closely watching every new update related to the NSE IPO.
Is NSE going for an IPO?
The NSE IPO has been one of the most talked-about listings in India for several years. Now that the merchant bankers and law firms have been finalised, the next step for the NSE will be preparing the Draft Red Herring Prospectus (DRHP). While the exact timeline is still unclear, investors and market participants are closely watching every update related to the NSE IPO status. If the listing happens at the expected valuation of around ₹5 lakh crore, it could become one of the largest IPOs in the history of the Indian stock market.
Can I Buy NSE Pre-IPO Shares?
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