New Delhi: The National Stock Exchange's long-awaited initial public offering is expected to take a significant step forward next week, with the bourse likely to submit its draft red herring prospectus (DRHP) to the Securities and Exchange Board of India (Sebi), according to sources familiar with the development.
The filing is expected on June 15 or June 16 and follows the exchange's board approval for the IPO earlier this year after receiving Sebi's no-objection certificate.
The proposed public issue will be entirely an offer for sale, allowing existing shareholders to divest part of their holdings, while no new shares will be issued by the exchange.
The development marks a major breakthrough for NSE, whose listing ambitions have remained stalled for nearly a decade because of regulatory concerns linked to the co-location controversy and governance-related issues.
NSE's shareholder base includes several prominent domestic and international investors. Life Insurance Corporation of India remains the largest shareholder with a stake of 10.72 per cent, while State Bank of India and SBI Capital Markets together hold about 7.5 per cent. Overseas investors such as Temasek-backed Aranda Investments and the Canada Pension Plan Investment Board also own significant stakes.
Market participants estimate NSE's valuation in the unlisted market at more than Rs 5 lakh crore, potentially making the issue one of the biggest listings in Indian capital market history.
The exchange had initially filed IPO papers in 2016, aiming to raise around Rs 10,000 crore through an offer for sale. However, regulatory approval was withheld amid investigations into alleged preferential access provided to certain brokers through its co-location infrastructure.
Since then, NSE has undertaken multiple governance and compliance reforms while repeatedly engaging with the regulator to secure approval for the listing.
To facilitate the public issue, the exchange has appointed a large consortium of merchant bankers, legal advisers and other intermediaries.
A key hurdle was cleared earlier this year when Sebi granted in-principle approval to NSE's settlement application in the unfair market access case. The exchange had proposed a settlement payment of Rs 1,388 crore in connection with the long-running co-location matter, paving the way for renewed progress on its IPO plans.
With regulatory obstacles gradually easing, the filing of draft documents is expected to mark the beginning of the final phase of NSE's journey towards becoming a publicly listed company.
(With agency inputs from PTI)