NSE IPO: Temasek, LIC Set to Participate in Rs 23,000 Crore Issue
The National Stock Exchange (NSE) is gearing up for a significant initial public offering (IPO), with an estimated value of Rs 22,900 crore (approximately $2.5 billion). Key players in this venture include Temasek Holdings Pte. and the Life Insurance Corporation of India (LIC), which hold substantial stakes in the exchange.
Key Stakeholders
– LIC’s Stake: 10.72% in NSE.
– Temasek’s Stake: Approximately 4.5%.
– SBI Capital Markets: Also expected to sell, with a stake of about 4.5% as of December 31, 2025.
– State Bank of India (SBI): Holds a stake of about 3.2%.
IPO Structure and Participation
– The IPO will consist solely of existing shareholders selling between 4% and 4.5% of the company’s equity.
– All 190,000 shareholders of NSE will have the opportunity to participate in this secondary sale.
Operational Steps Ahead
– The NSE board is anticipated to form a committee comprising top executives and representatives from major stakeholders, including LIC and SBI, in the coming days.
– The board meeting is scheduled for February 6 to approve the financial results for the quarter ending December 2025 and finalize the committee’s formation.
Current Market Valuation
According to Incredmoney.com, shares of NSE are currently valued at approximately Rs 2,150 in the unlisted market. This valuation places NSE at about Rs 5.3 lakh crore ($58 billion), making it the world’s fourth-most valuable exchange among its listed counterparts.
Upcoming Milestones
– The committee’s responsibilities will include:
– Appointing investment bankers.
– Negotiating fees.
– Determining the share quantity sold by existing investors.
– Filing the draft prospectus.
– The IPO is aiming for a filing timeline of approximately three months.
Regulatory Progress
NSE recently received regulatory clearance to begin preparations for the IPO, nearly a decade after its initial filing in 2016. Previous attempts were hampered by allegations regarding corporate governance and market access raised by the Securities and Exchange Board of India. The exchange is also addressing these issues with proposed settlement applications that could cost around Rs 1,300 crore.
In summary, as the NSE prepares for its historic IPO, the involvement of Temasek and LIC, alongside other major stakeholders, is critical to this major financial maneuver. The upcoming months will be pivotal in realizing this significant milestone for India’s premier stock exchange.