Is the NSE IPO finally nearing the ‘execution phase’? 5 must-know details for every investor

For years now, investors have been wondering about one key question – when will the IPO of the National Stock Exchange finally hit the market? After multiple delays, including the regulatory scrutiny and legal challenges, the exchange cleared yet another hiccup of sorts. This is when the Delhi High Court dismissed a petition challenging the no-objection certificate granted by the market regulator Securities and Exchange Board of India (SEBI) for NSE’s proposed IPO. The petition had sought to question SEBI’s approval of the NSE IPO. However, the court refused to intervene. It observed that there was no reason to stall the IPO process at this stage. With that decision, a key legal cloud hanging over the listing has lifted, clearing another roadblock . Let’s take a look at the key details of this upcoming IPO every investor need to know – NSE IPO: SEBI Nod brings issue back on track Even before the court ruling, SEBI had already allowed NSE to restart its IPO preparations. The regulator permitted the exchange to appoint merchant bankers and legal advisers and to begin drafting the offer documents. This marked an important development for the NSE IPO as it has been frozen for years due to governance concerns and the well-known co-location controversy. NSE IPO: Advisor appointment pushes IPO process ahead Another recent development has added to the momentum. NSE, in a recent development to its IPO journey, appointed Rothschild & Co as an independent financial adviser to oversee the IPO process. The key role of the adviser’s include guiding the exchange in selecting book-running lead managers. In addition to this, it also needs to coordinate with legal experts and ensure that the overall process remains structured and transparent. NSE IPO: Offer for sale, not fresh fundraising NSE’s board has approved proceeding with the IPO through an offer for sale. In simple terms, this means existing shareholders will sell part of their stake to the public. The exchange itself will not raise fresh capital through new share issuance. NSE IPO: What about the earlier allegations? The dismissed petition had alleged that NSE did not properly follow SEBI’s corporate action adjustment norms in certain derivatives contracts. According to the plea, the number of contracts in some trades was not properly changed, potentially affecting traders. However, the court rejected the petition and also rejected the claims. This means SEBI’s approval for the IPO will continue, and there is no change to it. For now, this reduces the chances of another long legal delay in NSE’s listing plans. NSE IPO: Unlisted share price trend – What they indicate While the formal IPO timeline is yet to be announced, activity in the unlisted market shows rising interest. NSE’s unlisted shares have seen sharp price movements in recent weeks. They are currently trading around Rs 2,075 per share in the unofficial market. Prices in the unlisted space have moved within a broad range of about Rs 1,625 to Rs 2,400 in recent months. At current levels, the implied market capitalisation of NSE in the unlisted market is estimated at over Rs 5 lakh crore. When is the NSE IPO likely? The big question continues to be the timing of the IPO. NSE first filed for its IPO back in 2016. Since then, regulatory scrutiny and governance issues have repeatedly pushed the plan into cold storage. Now, with the various developments such as the SEBI’s nod and the appointment of a financial adviser, the process appears to be back on track. Yet, key details such as issue size, valuation and timeline are still awaited.