BSE Shares Slide As NSE Moves Closer To ₹30,000 Crore IPO Filing

BSE shares declined more than 3% on June 17 after reports indicated that the National Stock Exchange (NSE) could file draft papers for its long-awaited initial public offering (IPO) with the Securities and Exchange Board of India (SEBI) later in the day.

According to a report by Moneycontrol, NSE is expected to submit its draft red herring prospectus (DRHP) after completing internal approvals, bringing one of India’s most anticipated public offerings a step closer to launch.

Invest in Indian Markets and Unlock Future Potential With 5paisa!

Open Account Now

At around 1:15 pm, BSE shares were trading 3.2% lower at ₹4,029 apiece. The stock emerged as the biggest loser on the Nifty Capital Markets index, which was down about 0.5%. Other stocks in the index, including Aditya Birla Sun Life AMC, MCX and Angel One, also traded lower during the session.

Proposed Issue Could Be Among India’s Largest

The proposed IPO is expected to be entirely an offer for sale (OFS), with existing shareholders likely to divest around 6% of NSE’s equity.

Based on the exchange’s estimated unlisted market valuation of nearly ₹5 lakh crore, the issue size could be around ₹30,000 crore. If launched at that scale, it would rank among the largest IPOs in India’s capital markets history.

NSE’s board reportedly approved the DRHP earlier this week, while the exchange’s IPO committee has completed the preparatory process ahead of the filing.

Investors Reassess Exchange Sector Valuations

The decline in BSE shares comes as investors evaluate the impact of NSE becoming a listed entity. Once listed, NSE would join BSE in offering investors direct exposure to India’s stock exchange business.

Market participants have also been tracking valuation dynamics within the exchange sector. NSE is the largest exchange in the derivatives space and has a significant share in turnover in different categories.

The possibility of investors reallocating capital toward the upcoming NSE issue appeared to influence sentiment in BSE shares during the session.

Key Shareholders Expected To Participate

Moneycontrol reported, citing merchant banking sources, that State Bank of India is likely to be the largest selling shareholder in the proposed offer, with plans to divest up to 24.75 million shares.

Other shareholders expected to participate include MS Strategic (Mauritius) Limited, Canada Pension Plan Investment Board, Aranda Investments (Mauritius) Pte. Ltd., Bank of Baroda, Stock Holding Corporation of India, General Insurance Corporation of India, The New India Assurance Company, National Insurance Company and United India Insurance Company.

The expected filing marks a significant milestone in NSE’s listing journey. With regulatory submission likely to be completed shortly, market attention is expected to remain focused on the proposed issue and its potential impact on India’s exchange sector in the months ahead.