National Stock Exchange prepares for major IPO with revised price band

The National Stock Exchange of India (NSE) is preparing for a major Initial Public Offering (IPO) following approval from the Securities and Exchange Board of India (SEBI). The issue is structured entirely as an Offer for Sale (OFS), meaning existing shareholders will sell their stakes rather than the company issuing new equity. State Bank of India (SBI) is expected to be the largest seller in this offering.

Recent reports indicate a shift in the IPO's pricing strategy. While initial discussions suggested a price band between 2,000 and 2,100 rupees, the exchange is now expected to set a lower price band between 1,700 and 1,785 rupees. This adjustment has lowered the projected valuation of the exchange from approximately 5.26 trillion rupees to around 4.42 trillion rupees (roughly 46.6 billion USD).

Due to the lower price band, some shareholders have reportedly declined to sell their holdings, leading to a potential reduction in the total stake offered from the original 6 percent to approximately 5.5 percent. Despite the pricing changes, market interest remains high; the Grey Market Premium (GMP) has reportedly reached 285 rupees. The IPO is expected to open for subscription during the week of September 14, with a target listing date of September 21.