NSE May Trim IPO Issue Size

The eagerly awaited initial public offering of the National Stock Exchange is likely to see a downsized issue size of ₹25,000 crore to ₹27,000 crore, down from earlier projections of ₹30,000 crore. The recalibration comes as multiple existing shareholders have opted to reduce or withhold their stakes from the proposed Offer for Sale, according to people familiar with the transaction.

Under the revised arrangement, the exchange's Offer for Sale component is expected to moderate to between 5.2% and 5.5% of its equity base, compared to the previously planned 6%. This reduction could keep the exchange from surpassing Hyundai Motor India’s ₹27,870 crore offering as the country’s largest public issue to date, while setting an anticipated price band in the range of ₹1,700 to ₹1,785 per equity share, revised from earlier estimates near ₹2,000.

"The reduction in the OFS size is understood to be driven by some shareholders choosing not to sell during the IPO, as they believe they could command a better valuation by selling their stake at a later stage."

The revised pricing structure is also calibrated to encourage retail investor participation. Because the public listing is structured entirely as a secondary share sale without any fresh issue of capital, the proceeds generated will be distributed entirely to the participating institutional and corporate selling shareholders rather than being credited to the exchange's reserves.

Key institutions participating in the divestment include the State Bank of India, which plans to shed up to 2.48 crore shares, alongside MS Strategic (Mauritius) Limited with 1.60 crore shares. Other notable entities paring holdings comprise the Canada Pension Plan Investment Board, Aranda Investments, Bank of Baroda, Stock Holding Corporation of India, and state-run general insurers such as GIC Re and The New India Assurance.

The issue gained regulatory clearance from the Securities and Exchange Board of India following years of legal hurdles stemming from the co-location and dark-fibre controversies, which were resolved after the Supreme Court disposed of related appeals. Market participants expect the subscription window to open between September 18 and September 22, with trading debuts slated for September 25, just ahead of the Pitru Paksha period.

**Important notes:**
• Estimated revised issue size: ₹25,000 crore to ₹27,000 crore (earlier ₹30,000 crore).
• Proposed OFS slice: 5.2% to 5.5% of equity (down from 6%).
• Anticipated price band: ₹1,700 to ₹1,785 per share.
• Expected subscription dates: September 18 to September 22, 2026.
• Expected listing date: September 25, 2026.
• Record benchmark: Hyundai Motor India holds the record for India's largest IPO at ₹27,870 crore.