Amid the buzz around the National Stock Exchange (NSE)’s initial public offering (IPO), the stock market exchange may cut the issue size. The proposed dilution of shares by existing shareholders could fall from 6% to 5.2%-5.5%, reported PTI citing sources on Wednesday.
The reduction in OFS could bring down the overall NSE IPO issue size to ₹25,000-27,000 crore, against earlier estimate of ₹30,000 crore. The official process for NSE IPO started last week when Securities and Exchange Board of India (SEBI) gave its approval for the Draft Red Herring Prospectus (DRHP).
NSE to fall short of becoming India’s largest-ever IPO
With the reduction in IPO size due to decline in OFS, NSE may fall short of becoming India’s largest-ever public offering. As of now, Hyundai Motor India’s IPO enjoys the title of being India’s biggest ever IPO with a size of ₹27,870 crore.
The reduction of OFS is attributed to the existing shareholders’ intent to hold for better value. As some shareholders chose not to sell during the IPO, they believe they could command better valuation by selling their stake at a later stage, reported PTI.
NSE IPO expected price band
The NSE IPO price band is likely to fall in the range of ₹1,700- 1,785 per share, against an earlier estimate of ₹2,000 per share. The Mumbai-based stock exchange is looking to make the issue more attractive with pricing being structured to provide greater participation and benefit to small investors in the OFS.
NSE IPO key dates
The NSE IPO will open for subscription on September 18 and conclude on September 22. The subscription period will be followed by NSE IPO listing on September 25, as per PTI report. The listing is likely to conclude before the ‘Pitru Paksha’ period that starts on September 26.
While NSE IPO has reduced its issue size, meanwhile, NSE IPO is billionaire Mukesh Ambani-led conglomerate’s digital services arm. Reliance Jio’s offering is likely to be estimated to be ₹37,700 crore.
NSE IPO: Key selling shareholders
Canada Pension Plan Investment Board, Aranda Investments (Mauritius) Pte Limited, Bank of Baroda, Stock Holding Corporation of India Limited, General Insurance Corporation of India, The new India Assurance Company, National Insurance Company and United India Insurance Company are among the key selling shareholders. SBI will offload up to 2.48 crore shares, whereas MS Strategic (Mauritius) Limited will offload arund 1.6 crore shares.
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