NSE Accelerates IPO Timeline Targeting March Filing

NSE is looking to file its draft prospectus by the end of March, as they have been actively working with investment banks and legal advisors as they prepare to file, as per news reports. After that, they intend to formally appoint them as their advisors, pending SEBI granting its no-objection certificate this month, as stated by the SEBI chairman.

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Historic Listing Nears Reality

The NSE, which is the largest stock exchange in India and has the highest volume of derivatives traded globally, will be going public approximately 10 years after their first failed attempt in 2016 due to ongoing co-location or fair access investigations and its pending case with the Supreme Court as well as pending settlement decisions with SEBI.

Massive Valuation Reflects Dominance

Currently, unlisted shares trade at a very high premium on trading platforms, indicating an approximate valuation of $55 billion for NSE. This is significantly higher than the currently listed rival BSE, which has a much lower valuation multiple because of its smaller market share. There are approximately 177,807 shareholders of NSE, making it the largest unlisted company in India based on number of investors.

Complex Shareholder Exit Strategy

Legal advisors and the NSE are working together to develop an exit strategy for the unprecedented mixture of retail and institutional shareholders. They are anticipating that those shareholders who have been long-term owners of the shares, as well as bank and institutional owners from outside India will have priority in their exits. The exit strategy will provide adequate opportunities for all shareholders.

Regulatory Clearance Path Clears

The SEBI no-objection certificate is the last remaining hurdle to submitting their DHRP. The co-location settlement offer that is currently under review is anticipated to expedite this process as well. Once the clearance is completed, the NSE plans to conduct a number of roadshows to gauge the institutional interest in this historic IPO on infrastructure.

Market Impact Analysis

Listing unlocks employee wealth realisation and institutional ownership in premier market infrastructure. NSE dominates 95% equity volume, 80% derivatives turnover, generating consistent high-margin revenues from transaction fees and data licensing.

Competitive Landscape Evolution

Competitive Forces are putting pressure on NSE's Neutral Colocation and Market Share position relative to increasingly aggressive BSE. As one of the industry leaders in technology, with over 500 patents and 99.99% uptime, it continues to strengthen its position as an industry leader.