NSE Selects 20 Banks, Eight Law Firms for Major Initial Public Offering

National Stock Exchange of India Ltd (NSE) Completes IPO Intermediary Selection

Key Highlights:

• The NSE has selected 20 merchant bankers to manage its proposed initial public offering (IPO).
• The list of selected merchant bankers includes international firms such as Morgan Stanley, Citigroup, JP Morgan, and HSBC Securities, as well as domestic firms like Kotak Mahindra Capital Co. and JM Financial Ltd.
• Eight law firms have been appointed to advise on the transaction, including Cyril Amarchand Mangaldas, Khaitan & Co, and Latham & Watkins LLP.

IPO Details:

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• The NSE plans to sell 4-4.5% stake in the IPO, which may raise between $1.5 billion and $2.5 billion.
• The IPO is expected to take up to eight months, with the exchange targeting a listing on the bourses after a prolonged delay.
• The NSE's operating income, or earnings before interest, taxes, depreciation, and amortization (Ebitda), almost doubled to ₹2,851 crore in the third quarter, while its margin widened to 73% from 40%.

Timeline:

• The NSE began inviting bank pitches late last month, with 25-30 banks submitting pitches over the next two weeks.
• The exchange will select the left and right lead bankers from the list of 20 merchant bankers over the next few weeks.
• Rothschild & Co. has completed its mandate as the process advisor for the selection of the IPO intermediaries.

Background:

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• The NSE's IPO was delayed for nearly a decade due to regulatory issues, but the process was kickstarted on 30 January with a "no-objection" notification from the Securities and Exchange Board of India (Sebi).
• The NSE board then approved the listing plan on 6 February, appointing a committee led by Life Insurance Corp. of India's (LIC) former managing director Tablesh Pandey.