NSE IPO to Open on September 17; Price Band Fixed at Rs 1,700-1,785

New Delhi, September 11 : The much-awaited initial public offering (IPO) of the National Stock Exchange (NSE) will open for public subscription on September 17, with the price band fixed at Rs 1,700 to Rs 1,785 per share.

At the upper end of the price band, retail investors will require a minimum investment of Rs 14,280 for one lot. The NSE IPO will have a lot size of eight shares.

According to the red herring prospectus (RHP), the three-day bidding period will open on September 17 and close on September 21. The anchor investor bidding window will open on September 16, while the basis of allotment is expected to be finalised on September 22. NSE shares are proposed to be listed on the BSE on September 24.

The IPO has been divided among various investor categories. Qualified institutional buyers (QIBs) have been allocated 50 per cent of the net offer, while retail investors have been allotted 35 per cent. The remaining 15 per cent has been reserved for non-institutional investors (NIIs).

The issue is entirely structured as an offer for sale (OFS), under which existing shareholders will sell a portion of their holdings.

State Bank of India (SBI), one of the key selling shareholders, has revised the number of shares proposed to be offered. According to the RHP, its proposed sale has been reduced to around 1.60 crore shares from the earlier 2.47 crore shares. Similarly, MS Strategic (Mauritius) Ltd has reduced its proposed offer to around 1.10 crore shares from 1.60 crore shares.

Other shareholders, including Bank of Baroda, Stock Holding Corporation of India and General Insurance Corporation of India, have also reduced their proposed share sales.

SBI remains among the major shareholders participating in the OFS and has indicated an offer of up to 2.48 crore shares, while MS Strategic (Mauritius) Ltd has an offer of up to 1.60 crore shares, according to the prospectus details.

At the upper end of the IPO price band, NSE's implied valuation is estimated at around USD 46.18 billion, based on an exchange rate of Rs 95.71 per US dollar. At this valuation, NSE would rank among the world's most valuable stock exchanges, at seventh position globally.

The estimated valuation would also place NSE slightly ahead of Coinbase Global, whose latest valuation was around USD 45.45 billion.

With the IPO dates, price band and lot size now finalised, market participants will closely watch subscription levels, investor demand and the premium or discount at which NSE shares eventually make their market debut.