Will the Market Break Its Own Record with the Country’s Biggest IPO? NSE’s Blueprint Revealed

Will the Market Break Its Own Record with the Country’s Biggest IPO? NSE’s Blueprint Revealed Khelja | 11/11/2024 17:22:53

Amidst the ongoing fluctuations in the Indian stock market, a new record is about to be set, and this record is tied to the country's largest IPO. Just a few days ago, Hyundai Motor Company's IPO made waves in the market, but now, the National Stock Exchange (NSE), India's largest stock exchange, plans to launch its own IPO, which could potentially become the biggest in the history of the Indian market.

Despite the downturn in the market in October and November, which affected several IPOs, Hyundai's IPO faced challenges. Its listing occurred at a discount of 1.32% below the price band due to the prevailing market sell-off. The question now arises: will the NSE IPO also face similar pressures?

NSE's Blueprint:
The NSE plans to launch what could be the largest IPO in India's stock market history, with the primary goal of increasing transparency and accountability. The IPO is currently awaiting approval from SEBI (Securities and Exchange Board of India). Through this IPO, NSE plans to sell about 10% of its equity, which could raise around ₹47,500 crore, a significantly larger amount compared to Hyundai's IPO.
Current Valuation of NSE:
NSE is currently valued at approximately ₹4.75 lakh crore in the unlisted market, with shares trading at ₹2,000 per unit. Additionally, the exchange recently issued a 4:1 bonus to its shareholders.
Relief After the Co-location Scandal:
The IPO had been delayed since 2016 due to allegations related to the co-location scandal, where some brokers had gained special access to NSE's systems. However, SEBI recently cleared the charges against NSE and its officials, paving the way for the IPO. NSE CEO Ashish Kumar Chauhan has indicated that the exchange will file its DRHP (Draft Red Herring Prospectus) once it receives approval from SEBI.
Ultimately, it remains to be seen whether the Indian stock market will break this record, with the NSE's IPO possibly becoming the largest IPO ever in India.