• Source:JND

The National Stock Exchange’s initial public offering (NSE IPO) will not be India’s largest public offering, as the offer-for-sale (OFS) size was reduced by nearly 15 per cent to up to 12.64 crore equity shares from the earlier proposed 14.89 crore equity shares. The exchange on Friday fixed a price band of Rs 1,700-1,785 per equity— at the upper end of the price band, NSE will raise Rs 22,569 crore, making it the country's second-largest public issue after Hyundai Motor India's Rs 27,870-crore initial share sale in 2024. 

The reduction in the OFS size from various stakeholders, including SBI and MS Strategic (Mauritius), has brought down the overall issue size from the initial estimate of Rs 30,000 crore. NSE IPO is one of the most awaited initial share sales, and it will open for subscription next week, after its offerings were stalled amid regulatory hurdles.

NSE IPO: Bidding Dates, Issue Size, Other Key Details 

NSE IPO Detail

Information

Subscription Dates

September 17 - September 21

Issue Size

Rs 22,569 crore

Listing Date

September 24

Price Band

Rs 1,700-1,785
 

NSE IPO GMP

Meanwhile, the NSE GMP remained subdued on the day of the price band announcement. NSE IPO latest GMP was Rs 185, last updated at 12:00 PM on InvestorAgain. With this, the NSE shares showed a potential listing at Rs 1,970 per share, up 10.36 per cent as compared to the price band of Rs 1785.

The grey market premium is not official data; it does not guarantee a precise listing price.

Stakeholders Reduce Offer For Sale Component

  • The IPO is an offer by existing shareholders to sell up to 126.4 million equity shares, up from the 148.9 million shares previously estimated. According to the Red Herring Prospectus (RHP), existing shareholders have reduced their stake sales.
  • State Bank of India will now offload 1.60 crore shares as compared to the earlier proposed OFS of 2.47 crore shares
  • MS Strategic (Mauritius) Limited’s OFS components reduced to 1.1 crore shares as compared to proposed 1.6 crore shares.
  • Additionally, other stakeholders, including Bank of Baroda, Stock Holding Corporation of India Limited and General Insurance Corporation of India, have also reduced their proposed share sales. 
  • Meanwhile, SBI Capital Markets Limited has joined the RHP as a new selling shareholder.
  • Since the NSE IPO is a full OFS, the proceeds from the sale of shares will go to the selling shareholders and not to the company.

Shares Reservation for Employees, Retail Investors And Others

Category

Details

Employee Reservation

Shares worth up to Rs 70 crore

Employee Discount

Rs 170 per equity share

QIB Reservation

50%

NII Reservation

15%

Retail Investor Reservation

35%

Hyundai India’s IPO Is India’s Largest 

Hyundai Motor India's Rs. 27,870 crore IPO was the largest public issue on record in the country. However, this NSE offering will surpass the Rs. 21,000 crore IPO of Life Insurance Corporation of India, which was launched in 2022.

Disclaimer: This story is for informational purposes only. It should not be considered investment advice. 


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