Sebi’s ‘no objection’ clears the way for NSE to launch its IPO

Synopsis

The Securities and Exchange Board of India has given the National Stock Exchange the go-ahead for its initial public offering. This marks a significant milestone after a decade of planning. The NSE's IPO is anticipated to be the largest in terms of size and post-market capitalization. Investor interest is high, with a surge in retail participation in unlisted shares.

The Securities and Exchange Board of India (Sebi) Friday permitted the National Stock Exchange (NSE), to launch its initial public offering (IPO), giving the crucial no-objection certificate to the proposed share sale that has been in the pipeline for nearly a decade.

"We are delighted to receive Sebi approval for our IPO - a significant milestone in our growth journey," NSE chairperson, Srinivas Injeti, said in a statement.

"With Sebi's approval, we embark on a new chapter of value creation for all our stakeholders. This approval also reinforces confidence in NSE being an integral part of the Indian economy and a beacon of Indian capital markets," Injeti said.

The no-objection certificate from Sebi has cleared a key regulatory hurdle for the exchange to launch its IPO, which had been stalled for more than a decade.

"From the day that the NOC is received, 8-9 months is what it looks like after that, to the listing date," NSE's chief executive, Ashishkumar Chauhan, had said in September last year.

In the unlisted market, NSE is currently valued at ₹5 lakh crore.

"The upcoming NSE IPO has emerged as one of the most closely watched market events, especially after Sebi's go-ahead, driven by exceptional investor interest and robust unlisted market activity," said Deep Shah, senior manager at Unistone Capital, a Mumbai-based merchant banking firm.

"As they gear up for the next stage in the run-up to the public offering, the number of shareholders holding NSE's unlisted shares has surged to over 1.5 lakh, a more than fourfold jump in just one quarter as retail participation has soared. It is also expected to be the largest IPO both in terms of size and post-market capitalisation, drawing interest from both domestic and global financial communities," Shah said.

The exchange had first sought Sebi's approval on October 18, 2016. However, the regulator didn't grant approval due to concerns related to the co-location case, governance lapses at the bourse and on its technology infrastructure. Since then, the stock exchange had approached Sebi multiple times seeking its clearance.

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