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NSE may cut its IPO size to as low as ₹25,000 crore

The exchange is considering reducing its overall offer for sale to about 5.2% to 5.5% of shares, with the IPO opening September 18 and targeting a ₹1,700-₹1,785 price band.

Reported · Written up by our desk · Emerging Markets

India’s National Stock Exchange is considering cutting its upcoming IPO issue size from an earlier ₹30,000 crore estimate to about ₹25,000-27,000 crore, according to LiveMint Markets citing PTI sources.

The change would come from reduced dilution by existing shareholders, with the offer for sale share potentially falling from 6% to roughly 5.2% to 5.5%, LiveMint Markets reports. The outlet adds that the smaller OFS could mean the IPO falls short of becoming India’s largest-ever public offering.

LiveMint Markets says the price band for the NSE IPO is likely to be set at ₹1,700 to ₹1,785 per share, down from an earlier ₹2,000 estimate. It attributes the OFS reduction to some shareholders wanting to hold shares longer for better valuation, choosing not to sell during the IPO.

The IPO process began after SEBI approved the Draft Red Herring Prospectus last week, LiveMint Markets reports. The subscription window is expected to run from September 18 to September 22, with listing slated for September 25, before the start of the ‘Pitru Paksha’ period on September 26.

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