NSE IPO Update: Rs 30,000 Crore Issue Now Likely At Rs 23,000 Crore, Here's Why

NSE has filed an updated DRHP for its proposed IPO, with the issue size likely to shrink as PSU insurers and a Morgan Stanley-linked entity cut their planned OFS.

Since the IPO is entirely an OFS, a reduction in the number of shares offered by these shareholders directly lowers the overall size of the issue.

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Key points generated by AI, verified by newsroom

• NSE's proposed IPO size reduced to ₹23,000 crore.
• Existing shareholders, including insurers, cut their offer-for-sale.
• Morgan Stanley-linked entity also reduced planned stake sale.

The National Stock Exchange's long-awaited public listing is set to be smaller than initially planned, with the proposed IPO now expected to raise around Rs 23,000 crore.

The exchange on Wednesday filed its updated draft red herring prospectus (UDRHP) with the Securities and Exchange Board of India (SEBI) and the stock exchanges, reported Moneycontrol. The revised proposal comes after some existing shareholders decided to reduce the number of NSE shares they intend to sell through the issue.

The IPO was estimated at around Rs 30,000 crore when NSE submitted its original draft papers in June.

Why Has The NSE IPO Size Come Down?

The change in the proposed issue size is linked to a reduction in the offer-for-sale (OFS) by some of NSE's existing shareholders, the report said.

Public-sector insurance companies that had planned to sell NSE shares have lowered the number of shares proposed to be offered. An entity associated with Morgan Stanley has also cut its planned stake sale.

Since the IPO is entirely an OFS, a reduction in the number of shares offered by these shareholders directly lowers the overall size of the issue.

NSE itself will not receive any money from the IPO.

What Was The Original Share Sale Plan?

When NSE filed its original DRHP, shareholders had proposed an OFS of 14.89 crore shares, equivalent to around 6 per cent of the exchange's equity.

Among the sellers were four public-sector insurers. GIC Re had proposed to offer up to 1.066 crore shares, while New India Assurance had planned to sell 1.05 crore shares.

National Insurance Company and United India Insurance Company had each proposed an OFS of 60 lakh shares.

Together, the four insurers had originally planned to sell around 3.37 crore NSE shares.

The report said the proposed sale by some of these insurers has since been reduced.

Morgan Stanley-Linked Entity Also Revises Share Sale

MS Strategic (Mauritius) Ltd, an entity linked to Morgan Stanley, has also reduced the number of NSE shares it plans to sell.

The original DRHP had proposed an OFS of 1.60 crore shares by MS Strategic.

The combined reduction by the shareholders has brought down the size of the proposed NSE offering from the level indicated in the initial draft papers.

Smaller IPO Despite Strong Institutional Interest

The reduction in the offer size comes even as the proposed NSE listing has attracted significant interest from institutional investors.

Sources said the institutional book has received interest of around Rs 85,000 crore.

The strong institutional response comes as NSE moves forward with its IPO process nearly a decade after it first began working towards a public listing.

The filing of the updated DRHP with SEBI and the stock exchanges marks another step in the exchange's long-running effort to list its shares publicly.