The biggest stir is going to happen in the history of Indian primary market and stock market. Very big and good news has come for the investors who have been waiting for the Initial Public Offering i.e. IPO of the country’s largest stock exchange, National Stock Exchange (NSE) for a long time. According to the latest reports coming out from the corridors of the market, the process of this mega-IPO with an estimated valuation of ₹ 5 lakh crore has gained momentum. There is every possibility that NSE may file its Draft Red Herring Prospectus (DRHP) with the market regulator SEBI next week itself. Speed increased after SEBI’s approval. This public issue of NSE was stuck for a long time due to technical and regulatory reasons. However, in recent times the exchange has completely rectified its corporate governance and technical shortcomings, after which it has got a big relief on the regulatory front. As soon as there is indication of getting the green signal from SEBI, investment analysts and merchant bankers have started finalizing the paperwork. This is the reason why now the draft paper (DRHP) seems to be completely ready to be filed next week itself. Eyes set on valuation of ₹5 lakh crore, there is tremendous excitement in the market regarding the size of this IPO and the valuation of the company. According to experts, the total market valuation of National Stock Exchange in this public issue can be estimated at around ₹ 5 lakh crore (about 60 billion dollars). If this happens, it will become one of the most valuable and largest public issues in Indian corporate history, challenging the records of even big IPOs like LIC and Paytm. Big investors will take entry through Offer for Sale (OFS). According to information received from market sources, this IPO may be mainly based on ‘Offer for Sale’ (OFS). Under this, the existing large shareholders of NSE, which include domestic financial institutions, banks, insurance companies and foreign portfolio investors (FPIs), will put some of their stake for sale in the market to the general public and retail investors. This move will not only increase transparency in the exchange, but will also give domestic retail investors an opportunity to directly become stakeholders in the country’s largest trading body. Huge surge in pre-market and unlisted share market As soon as the news of filing of NSE IPO came, the demand for its shares in the unlisted share market i.e. gray market suddenly started touching the sky. Investors are racing to include its unlisted shares in their portfolios at huge premiums. Brokerage firms believe that as soon as there is official confirmation of DRHP filing next week, a new record of liquidity can be created in the primary market and investors from every corner of the country can join the race to open demat accounts to invest money in this historic IPO.
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