India’s largest stock exchange files for IPO as mega-listings gather pace
Human statues and a bull are seen next to the logo of the National Stock Exchange (NSE) in Mumbai, India, on September 6, 2024.
Francis Mascarenhas | Reuters
National Stock Exchange, India’s largest stock exchange filed paperwork for initial public offeringIt is expected to be among the biggest charts in the country this year.
The public offering will be a sales offer in which many large domestic and foreign investors will share their shares.
India’s largest public sector bank, State Bank of India, Canada Pension Plan Investment Board and Singapore’s Temasek are among the 10 investors selling shares through the IPO.
Details regarding pricing and valuation of the IPO were not disclosed in the draft documents. It usually takes two to three months for issues to get approval from India’s capital markets regulator, market experts say.
India is among the top 10 stock markets worldwide with a total market value of approximately 200 million TL. 474 trillion rupees ($5 trillion) and NSE is the main stock exchange. It holds 93% of India’s cash market and accounts for almost 100% of the country’s equity futures, with a nearly 75% share in stock options trading, according to its draft IPO filing.
NSE, which has been trying to be listed since 2016, has over 129 million unique registered investors.
NSE’s Indian rival BSE, which is much smaller in terms of trading volume, has a market capitalization of $17.2 billion and has been trading at a price-to-earnings ratio of 66 times in the last 12 months.
IPO activity in India has weakened as investor appetite weakened due to the effects of the Middle East conflict. Many major public affairs have been put on hold, but IPO activity is resuming as the Iran war shows signs of ending.
Indian billionaire Mukesh Ambani also owns Reliance Jio Infocomm, India’s largest wireless operator. to file paperwork for a public matter $4 billion on or before June 19, according to a Financial Times report on Wednesday.
With an estimated total fundraising of over 600 billion rupees (over $6.3 billion), the NSE and Reliance Jio IPOs could account for almost a third of the total funding raised from 104 mainboard IPOs last year, said Prashant Rao, director and head of equity capital markets at Anand Rathi Investment Banking.
