NSE – Merchant Bankers Begin IPO Pitches; Legal Advisor Likely This Week

Expert Analysis:

• National Stock Exchange of India (NSE) has begun the process of selecting merchant bankers for its proposed initial public offering, with investment bank presentations starting this week as the exchange advances its long-awaited listing plans.

• On the first day alone, more than 10 merchant bankers participated in the pitching process, with additional firms expected to present before the selection process concludes later in the week.

• NSE is also expected to finalise its legal advisor by the end of the week, while an independent chartered accountant is likely to be appointed soon to assist with regulatory documentation and compliance for the IPO.

• After the merchant bankers are appointed, they will be responsible for structuring the offer and preparing the Draft Red Herring Prospectus (DRHP), which could be filed within three to four months of finalising advisors.

• The proposed IPO is expected to be entirely an offer for sale (OFS) by existing shareholders, with market participants estimating around 4.5% of equity to be sold, potentially valuing the issue at around ₹23,000 crore based on an unlisted market price of about ₹2,000 per share.