NSE IPO Moves Closer as SEBI Grants In-Principle Approval to Settlement Plea; Govt Clears 2.5% Stake Sale
SEBI's in-principle approval of NSE's settlement plea and the government's clearance for a 2.5% stake sale pave the way for India's largest stock exchange's IPO.Summary
The National Stock Exchange (NSE) is significantly closer to its long-awaited initial public offering (IPO) after the Securities and Exchange Board of India (SEBI) granted “in-principle” approval to its settlement plea. This approval addresses a co-location case from 2016, where brokers were allegedly given unfair access to trading systems, which had stalled the IPO for nearly a decade. NSE proposed a settlement amount of Rs 1,387-1,388 crore, payable in 2025, which SEBI has tentatively accepted, though the matter is still before the Supreme Court.
Alongside SEBI’s approval, the government has also cleared a 2.5% equity dilution in NSE, aligning with SEBI’s revised listing norms for companies with valuations exceeding Rs 5 lakh crore. This allows NSE to list with a minimum public float of 2.5%, a reduction from the previous 5% requirement. NSE expects to file its Draft Red Herring Prospectus (DRHP) within four months of receiving the final No Objection Certificate (NOC) from SEBI, with the entire IPO process estimated to take over seven months.
Investor interest in unlisted NSE shares has surged by 10-15% following the regulatory clarity, with shares trading around Rs 2,095, implying a valuation close to Rs 5 lakh crore. While NSE has not yet disclosed the equity offered or the target valuation, it is actively working with investment bankers and law firms to prepare for the IPO.
(Source：Goodreturns)