NSE IPO impact: New India Assurance, IFCI, NSDL, other stocks surge up to 14% as NSE files IPO papers with SEBI

National Stock Exchange (NSE) shareholders and some other companies, like IFCI, New India Assurance, General Insurance Corp., and NSDL, are among stocks which surged during the trading session on Thursday, June 18, after the exchange firm filed its IPO papers with the capital markets regulator, the Securities and Exchange Board of India (SEBI).

On Wednesday night, NSE filed its draft red herring prospectus (DRHP) with SEBI to raise funds via a complete offer for sale (OFS) component public issue of stocks through the initial public offering (IPO) route.

According to a PTI report citing people aware of the development, the valuation of the NSE IPO is estimated to be close to ₹30,000 crore in the unlisted market, potentially marking one of the biggest ever public issues on the Indian stock market.

Which shareholders are selling stakes via the OFS issue?

According to the filing details, SBI will be selling NSE shares at a weighted average cost of ₹0.80 per equity share via the public issue.

As per the DRHP filing, SHCIL is selling its stake in NSE for ₹0.46 per share via the OFS issue.

IFCI shares were in the spotlight after NSE filed its IPO papers, as the company holds around 52.86% or a majority stake in the Stock Holding Corporation of India Ltd.

The company will be selling its stake in NSE for an average selling price of ₹0.32 per share via the OFS issue.

MS Strategic Mauritius is selling 1.6 crore shares at a selling price of ₹66.54 apiece, Canada Pension Plan Investment Board is selling 1,18,74,060 shares at ₹324.13 apiece, and Aranda Investments Mauritius is selling 1,12,46,336 shares at ₹62.38 apiece.

While National Insurance Co. is selling 60 lakh shares at a selling price of ₹0.32 apiece, and United India Insurance Co. is selling 60 lakh shares at a price of ₹0.50 per share, as per the filings.

List of stocks buzzing today

*NOTE: Data related to the stock returns and CMP has been collected from the NSE website.

NSE-owned subsidiary, National Securities Depository or NSDL shares, also gained 6% intraday to ₹942 apiece on Thursday’s market after the NSE IPO DRHP filing update.

Other exchange and depository services provider, BSE shares, gained more than 2% on Thursday’s intraday session, while CDSL shares jumped more than 8% to a high of ₹1,396.80 on June 18.

The stocks were gaining momentum on the backdrop of the upbeat market sentiment fuelled by potentially one of the biggest upcoming IPOs in India.

Key things to know about NSE IPO

According to NSE’s DRHP filing, the company is looking to offer up to 14,89,05,525 or more than 14.89 crore equity shares with a face value of ₹1 apiece in an effort to raise funds from the Indian stock market via an OFS issue.

As the NSE IPO comprises a complete offer for sale issue (OFS), hence there will be no fresh issue component in the corporate action. All funds raised from the Indian stock market investors will be paid to the individual corporate shareholders selling their stake in the company.

Kotak Mahindra Capital, Morgan Stanley India, HSBC Securities and Capital Markets (India), SBI Capital Markets, Avendus Capital, DAM Capital Advisors, HDFC Bank, IDBI Capital Markets, Motilal Oswal Investment Advisors, and Pantomath Capital Advisors are the book-running managers in the NSE IPO

MUFG Intime India Private is the registrar of the public offer, according to the DRHP filing.

NSE plans to allocate not more than 50% of the offer to the Qualified Institutional Buyers (QIB), not less than 15% to the non-institutional investors (NIIs), and 35% to the retail buyers.

The DRHP needs to receive final SEBI approval for NSE to fix the dates and carry out its public issue on the Indian stock market.