NSE invites investment banks to pitch for managing IPO

Mumbai: The National Stock Exchange has invited as many as 15 investment bankers to pitch for managing its proposed IPO, said sources in the know. JPMorgan Chase, Kotak Mahindra Capital Company, JM Financial, Axis Capital and ICICI Securities are among bankers in the fray for the mandate to manage the issue, they said.

“The pitching process is expected to commence by mid-March, with the exchange likely to initiate the process of filing its draft red herring prospectus in April,” a source told ET. An email sent to NSE remained unanswered.

Rothschild is assisting NSE to select lead bankers, legal counsels and other intermediaries for the IPO. The IPO will be an offer for sale, which means existing shareholders may dilute their stake while the exchange will receive no fresh funds.

According to people familiar with the IPO details, existing investors are expected to offload about 4-4.5% of the exchange’s total equity. Life Insurance Corporation of India continues to be the single largest investor in NSE with a 10.72% holding. It is followed by Aranda Investments Mauritius Pte at 4.54%, Stock Holding Corporation of India Ltd at 4.44%, SBI Capital Markets Ltd at 4.33%, and Veracity Investments Ltd with a 3.93% stake. It couldn’t be ascertained who will offer their shares in the IPO.

In the unlisted market, NSE is currently valued at ₹5 lakh crore. Based on prices in the unlisted market, the IPO could raise approximately ₹23,000 crore. On Thursday, NSE shares in the unlisted market were trading at ₹2,035 per share. Last month, the Sebi issued the much-awaited no-objection certificate for the IPO, ending a regulatory impasse that had stalled the listing for nearly a decade.

Early in February, NSE’s board approved the IPO and appointed a six-member panel to facilitate the IPO process. The newly-constituted committee is led by Tablesh Pandey, along with public interest directors Srinivas Injeti, Prof. Mamata Biswal, Abhilasha Kumari and Prof. G Sivakumar, as well as NSE’s MD and CEO, Ashishkumar Chauhan.