NSE May Trim IPO Size To ₹25,000 Crore From Earlier ₹30,000-Crore Plan

The National Stock Exchange (NSE) may scale down the size of its much-awaited initial public offering (IPO), with the proposed issue now likely to be worth around ₹24,000-25,000 crore instead of the earlier estimate of ₹30,000 crore, according to people familiar with the development.

The reduction could also mean fewer shares being offered by existing shareholders. The IPO may now account for roughly 5% of NSE's paid-up capital, compared with the nearly 6% stake that was expected to be sold earlier. Sources indicated that the price band could be around ₹1,750 per share.

Smaller Issue Could Change India's Biggest IPO Race

At the earlier estimated size of ₹30,000 crore, the NSE IPO was on track to become the biggest public issue ever launched in India. It would have moved ahead of Hyundai Motor India's ₹27,870-crore IPO in October 2024.

A smaller issue of around ₹25,000 crore, however, would leave Hyundai Motor India holding on to that record for now.

The next major contender could be Jio Platforms, which is expected to eventually go public through an IPO estimated at around ₹37,000 crore. The timing of that proposed offering has yet to be announced.

NSE Eyes September Launch And Listing

NSE is reportedly working towards launching its IPO in the third week of September, with the listing likely to follow in the fourth week of the month.

The exchange received approval from the Securities and Exchange Board of India (SEBI) to proceed with the IPO on 4 September. According to people familiar with the matter, NSE is looking to complete the issue process before Pitru Paksha begins.

The anchor investor portion of the IPO is likely to open on 17 September if the proposed timeline goes ahead as planned.

Pitru Paksha begins on 26 September, a period during which many businesses and investors traditionally avoid starting new ventures or making major purchases.

NSE Shares To Be Listed On BSE

Once listed, NSE shares will trade on the platform of its long-standing rival, the Bombay Stock Exchange (BSE).

It remains unclear which shareholders may reduce the number of shares they plan to sell if NSE goes ahead with a smaller IPO.

Several existing shareholders are expected to participate in the offer, including State Bank of India, MS Strategic (Mauritius), Canada Pension Plan Investment Board, Aranda Investments (Mauritius), Bank of Baroda and Stock Holding Corporation of India.

NSE has not made an official announcement on the possible reduction in the issue size, and the final structure of the IPO could still change before the public offer is launched.

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