The National Stock Exchange (NSE) is expected to cut the size of its long-awaited initial public offering (IPO) to around 5.25-5.5 per cent of its equity from the 6 per cent proposed earlier, according to people aware of the discussions.
This comes after the stock exchange is understood to have priced its public offer at around ₹1,700-1,785 per share, from the earlier expectation of around ₹2,000 per share. In the unlisted market, NSE’s shares were trading around ₹2,025 apiece, with the grey market premium at around ₹228 as of Wednesday.
Some selling shareholders backed out after the IPO pricing as they expect to get a better valued exit after the listing. Many selling shareholders were unwilling to shell out their stake in the OFS from the beginning, but agreed due to the regulatory requirement for the exchange to list, the people said.
Meanwhile, Bank of Baroda is said to divest less in the NSE OFS around 76.90 lakh shares instead of earlier proposed 109.8 lakh shares.
OFS reduction
The reduced offer for sale (OFS) would bring down the overall issue size closer to ₹25,000 crore from the earlier estimate of ₹30,000 crore. NSE would’ve been the largest ever public issue after Hyundai Motor India’s IPO of ₹27,870 crore.
The final price band is expected to be announced by the exchange next week, with the issue likely to open later in the week. The shares may list on BSE by September 25, 2026, ahead of the start of Pitru Paksha, a period traditionally considered inauspicious for new beginnings.
As per the red herring prospectus approved by the markets regulator last week, the State Bank of India group was offering up to 2.475 crore shares, followed by MS Strategic (Mauritius), which will sell up to 1.60 crore shares, and the Canada Pension Plan Investment Board (CPPIB), which will offer up to 1.19 crore shares.
Other sellers include Aranda Investments (Mauritius), Bank of Baroda, Stock Holding Corporation of India, General Insurance Corporation of India, National Insurance Company and United India Insurance Company.
The regulator’s approval came a day after the Supreme Court disposed of SEBI’s appeals against the NSE in the long-running co-location and dark-fibre cases. NSE had agreed to pay ₹1,491.21 crore to settle the two matters.
After being stalled for nearly a decade, NSE’s listing plans gained momentum earlier this year after it received a no-objection certificate from the regulator. The exchange filed its draft red herring prospectus with SEBI in June.