The National Stock Exchange (NSE) long-awaited initial public offering (IPO) has finally taken off with the stock exchange filed its 614-page draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) and the BSE.
NSE shares will be listed on BSE. This is on the similar lines as as BSE’s own shares are listed on NSE.
The NSE has appointed 20 investment banks as book running lead managers (BRLMs) for its IPO.
State Bank of India (SBI) would sell shares worth about Rs 4,950 crore at an assumed IPO price of Rs 2,000 per share that were acquired at a weighted average cost of just Rs 1.98 crore, according to disclosures in NSE’s draft red herring prospectus.
Among the other bankers, Bank of Baroda would sell shares worth about Rs 2,197 crore despite an acquisition cost of roughly Rs 59 lakh. Stock Holding Corporation of India Ltd would monetise holdings worth around Rs 2,178 crore against an investment of about Rs 50 lakh.
Further, in terms of insurers, New India Assurance would be worth around Rs 2,100 crore, while National Insurance’s stake would fetch nearly Rs 1,200 crore, and United India Insurance Company would similarly sell shares worth about Rs 1,200 crore.
According to the Draft Red Herring Prospectus (DRHP), the BRLMs to the offer are Kotak Mahindra Capital Company, JM Financial, Morgan Stanley India Company, Citigroup Global Markets India, HSBC Securities and Capital Markets (India), J.P. Morgan India, SBI Capital Markets, Anand Rathi Advisors, Avendus Capital, Axis Capital, DAM Capital Advisors, Equirus Capital, HDFC Bank, ICICI Securities, IDBI Capital Markets & Securities, IIFL Capital Services, Motilal Oswal Investment Advisors, Nuvama Wealth Management, Pantomath Capital Advisors and 360 ONE WAM.
The IPO is entirely an offer for sale (OFS), with existing shareholders offloading up to 111.42 million equity shares.