Rothschild to advise NSE on initial public offer, investment bank pitches likely after three weeks

Rothschild & Co. Hired as Advisor for National Stock Exchange of India's IPO

NSE Taps Rothschild to Lead IPO Process

The National Stock Exchange of India Ltd (NSE) has chosen Rothschild & Co. as its advisor to guide the company through the initial public offering (IPO) process. This development was confirmed in a statement to Mint, in response to an emailed query.

Rothschild's Role in the IPO Process

• Beauty Parade Process: Rothschild will assist NSE in conducting a beauty parade, where the exchange will interview and select investment banks for its offering.
• Developing Evaluation Framework: Rothschild will help NSE develop an objective evaluation framework, define clear selection criteria, and manage the selection process from documentation to consolidation of feedback.

Next Steps for NSE

Within the next three weeks, the NSE will begin inviting investment banks to submit IPO pitches, according to a person aware of the developments.

IPO Approval and Committee Formation

Last week, NSE formally approved its IPO, paving the way for the country's largest stock exchange to list on the bourses after a prolonged delay.

• IPO Committee: The exchange has approved the formation of an IPO committee to oversee and execute the listing process. This committee is mandatory for companies without promoters looking to go public.

Committee Members and NSE's Financial Performance

• Committee Chair: The committee will be chaired by Life Insurance Corporation of India's (LIC) former managing director, Tablesh Pandey.
• Financial Performance: NSE's third-quarter profit rose 15% sequentially to ₹2,409 crore, while its revenue from operations increased 7% to ₹3,925 crore.
• Earnings and Margin: NSE's operating income, or earnings before interest, taxes, depreciation, and amortization (Ebitda), almost doubled to ₹2,851 crore, while its margin widened to 73% from the September quarter's 40%.