3 hrs ago
NSE IPO Offer Shrinkage Could Limit Record-Size Ambitions
The National Stock Exchange is preparing to sell shares to the public.
Some existing shareholders may sell fewer shares than originally planned.
This could make the IPO worth ₹25,000–27,000 crore instead of about ₹30,000 crore.
That would put it below Hyundai’s record IPO size.
The exchange also wants to make the sale easier for small investors to join.
Its expected share price is ₹1,700–1,785.
Some people bought NSE shares privately at prices above ₹1,900.
If the IPO price is lower, those buyers could temporarily lose money.
The NSE’s planned offer for sale may fall to 5.2–5.5% from 6%.
The possible reduction could lower the IPO size to ₹25,000–27,000 crore.
The revised size may fall below Hyundai’s ₹27,870 crore IPO record.
Some shareholders reportedly prefer selling later at a potentially higher valuation.
The expected IPO price of ₹1,700–1,785 could disadvantage buyers of unlisted shares.
- Who
- The National Stock Exchange, its shareholders, retail investors, and buyers of unlisted NSE shares.
- What
- The proposed NSE IPO may be reduced in size because some shareholders may cut their offer for sale.
- Where
- The offering concerns India’s National Stock Exchange and shares traded in India’s unlisted market.
- When
- The IPO is expected later this month, although no specific date is given.
- Why
- Some shareholders reportedly expect a better valuation by selling later, while NSE is seeking to encourage retail participation.
Shareholder Strategy
Retail Investor Concerns
Reducing the offer for sale
Shareholder Strategy
Some shareholders are choosing not to sell now because they believe they could receive a better valuation later.
Retail Investor Concerns
A smaller offer could reduce the overall IPO size and make it less likely to exceed India’s existing IPO record.
IPO pricing
Shareholder Strategy
NSE is reportedly structuring pricing to encourage retail participation and provide benefits to small investors.
Retail Investor Concerns
Investors who bought NSE shares above ₹1,900 in the unlisted market could face losses if the IPO is priced and listed lower.
Key facts
- Expected OFS
- 5.2–5.5%, compared with 6% planned earlier
- Possible IPO size
- ₹25,000–27,000 crore
- Earlier estimated size
- About ₹30,000 crore
- Expected price band
- ₹1,700–1,785 per share
- Earlier price estimate
- About ₹2,000 per share
- Current IPO record cited
- Hyundai’s IPO at ₹27,870 crore
- Unlisted-market trading level
- NSE shares have largely traded above ₹1,900 on most platforms
Quotes
Hardikkumar Rabara
Product head for unlisted shares at Anand Rathi Share and Stock Brokers Ltd.
“The average retail investor that came in this year will be facing a notional loss”
telegraphindia.com
Sources
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