The number of shares offered by shareholders of NSE in the just concluded tendering exercise is exceeding the potential quantum of equity holdings that may be sold by the exchange in its proposed initial public offering, according to people familiar with the matter.
The deadline for the share tender passed on April 27, the people said. NSE, in March, sent a letter to all its shareholders, allowing them to tender their shares that would be sold in the IPO through a so-called “offer for sale.”
The development signals that NSE could achieve its target of pooling equity that will eventually be offloaded via “offer for sale” in the IPO planned, possibly this year. NSE has the biggest shareholder base among India’s privately owned firms. The number of company’s shareholders is more than 200,000, according to filings available on its website.
“The board approved an initial public offering of the company through an offer for sale on Feb. 6. No further comments at this stage,” NSE said in reply to an ET NOW emailed query.
In January, NSE secured a no-objection certificate from markets regulator Sebi for its IPO plan. On March 12, the firm appointed 20 banks to manage its maiden public equity offering.
In February, NSE Chief Executive Officer Ashish Chauhan told ET NOW that the equity on offer at the IPO could be 4%-4.5% of the exchange’s shareholding.
At least 111 million shares are likely to be offered for sale at the IPO, according to ET NOW calculations. NSE’s valuation is seen at around $53 billion.
Meanwhile, the exchange is waiting for Sebi to clear a high-powered panel’s recommendation approving a settlement of Rs 18 billion rupees ($190 million) in the co-location matter. In 2009, NSE allowed certain brokers preferential access to the exchange’s premises, providing those market participants an advantage of faster execution of transactions, that could have boosted their trading gains.
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)
