NSE Shortlists 20 Merchant Bankers and Eight Law Firms for Proposed IPO

NSE Completes Selection of Intermediaries for Proposed IPO

Key Developments:

• NSE has completed the selection of merchant bankers, law firms, and other intermediaries for its proposed initial public offering (IPO).
• A total of 20 merchant bankers have been appointed, including Kotak Mahindra Capital Company, JM Financial, Axis Capital, and global investment banks such as Morgan Stanley India and J.P. Morgan India.

Intermediary Appointments:

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• The exchange has also chosen 8 law firms, including Cyril Amarchand Mangaldas, Khaitan & Co, and Latham & Watkins, to support the transaction.
• Other appointed intermediaries include MUFG Intime India as registrar, along with firms such as Makarand M Joshi & Company and Concept Communication.

IPO Details:

• The proposed IPO is expected to be an offer for sale (OFS) by existing shareholders, with equity shares of face value Rs 1 each proposed to be listed on one or more stock exchanges.
• Market participants estimate that around 4.5% of the exchange's equity may be offered in the issue.
• The IPO size could be close to Rs 23,000 crore, based on the current unlisted market price of approximately Rs 2,000 per share.

Timeline:

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• The completion of intermediary appointments is expected to accelerate preparations for the long-awaited listing of the exchange.
• NSE officials have stated that it will take 3-4 months to prepare the Draft Red Herring Prospectus (DRHP) after the appointment of the merchant bankers.

Background:

• The proposed IPO follows the No Objection Certificate (NoC) issued by the Securities and Exchange Board of India (SEBI) on January 30, clearing a key regulatory hurdle for the exchange to proceed with its long-delayed listing plans.
• NSE had earlier attempted to go public in 2016, but the plan was put on hold after regulatory investigations into alleged violations, including issues related to an alleged scam involving co-location facilities.