NSE IPO: Stock exchange receives SEBI approval for ₹30,000-crore issue; all you need to know

The Securities and Exchange Board of India (SEBI) issued an observation letter, effectively a clearance to the world's largest derivatives exchange to proceed with the IPO, according to an update on the regulator's website on Friday.

NSE had filed its draft papers with the markets regulator on June 17 for the proposed public issue.

Receiving SEBI's observations is a key step in the IPO process, after which the company can proceed with further preparations for the public issue, subject to applicable regulatory requirements.

The approval marks a major step for NSE, whose listing plans had been stalled for nearly a decade due to regulatory hurdles, including the co-location controversy.

The exchange is expected to announce the IPO price band and other key details next week. The public issue is likely to be launched on September 15 with the exchange targeting a listing on September 24-25, the report said, citing sources close to the development.

According to its Draft Red Herring Prospectus (DRHP), the initial share sale is an offer for sale (OFS) of 14.89 crore shares by existing investors.

Those offloading their stake via the OFS route include the State Bank of India, MS Strategic (Mauritius), Aranda Investments (Mauritius) Pte Ltd, Canada Pension Plan Investment Board, Stock Holding Corporation of India, General Insurance Corporation of India, Bank of Baroda, The New India Assurance Company, United India Insurance Company and National Insurance Company.

The company will not receive offer proceeds, as there is no fresh issue component. The money raised will go to selling shareholders.

Half of the net offer will be reserved for qualified institutional buyers (QIBs), 35% for retail investors and 15% for non-institutional investors.

This long-awaited public offering will surpass the previous record held by Hyundai Motor India's ₹27,870 crore issue launched in October 2024.

About NSE

NSE operates a vertically integrated, multi-asset stock exchange providing a single platform for trading, clearing and listing.

It also offers other services like data feed, data terminal, and licensing services across futures, options, cash market, mutual funds platform, exchange-traded currency derivatives, commodity derivatives, wholesale debt market and interest rate futures, among others.

The primary domestic peer of NSE is BSE. Globally, its peers include the New York Stock Exchange (NYSE), Shenzhen Stock Exchange, Shanghai Stock Exchange, Nasdaq, Korea Exchange and Japan Stock Exchange, among others.