The countdown begins for the country's biggest IPO! NSE to launch a mega issue worth ₹23,000 crore

The National Stock Exchange (NSE), through which you buy and sell shares daily, is now fully prepared to list itself on the stock market. Investors have been awaiting this mega IPO for a long time, and now, with SEBI's green light, the exchange has accelerated its preparations. 

Sources indicate that the draft paper (DRHP) will be filed by the end of June, and its shares will be trading in the market by the third quarter of this financial year, i.e., December.

Will the record of Hyundai and LIC be broken?

According to reports, the exchange may sell 4 to 4.5 percent of its stake through this IPO. The plan is to raise approximately ₹23,000 crore from this offer. However, this total amount may change depending on market conditions and final valuation. 

You may recall that the largest IPOs in the country currently belong to Hyundai (₹2,858 crore in October 2024) and the country's largest insurance company, LIC (₹20,000 crore in early 2022). Now, NSE is on its way to surpass these giants and set a new record.

A long wait of 8 years, the file was stuck since 2016

The story of this IPO isn't new. NSE first filed its draft papers in 2016 to raise ₹10,000 crore. However, a co-location controversy emerged at that time, and the entire plan was put on hold following strong objections from market regulator SEBI. 

Since then, the exchange management has repeatedly approached SEBI for IPO approval. Now, that long struggle appears to be bearing fruit. 

The exchange has also assembled a team of 20 renowned merchant bankers and several law firms, including several prominent domestic and foreign institutions, for this mega launch.

SBI will also sell its stake

SBI Chairman CS Setty recently clarified that the bank is considering liquidating some of its stake in the NSE IPO. Currently, the total value of SBI and its subsidiary, SBI Caps, in NSE is estimated at approximately ₹43,500 crore. 

Consequently, when the issue opens, a significant inflow of funds from both large institutions and retail investors is expected. 

Currently, market participants are keenly watching the preliminary filings, expected in June, which will provide a clear picture of this mega offering and its valuation.