New Delhi: In a major development for India’s capital markets, the National Stock Exchange of India (NSE) has officially cleared the path for its long-awaited Initial Public Offering (IPO). The company’s board on Friday approved the proposal to launch the IPO, marking a significant step towards NSE’s listing.
As per the decision, the IPO will consist entirely of an Offer-for-Sale (OFS), meaning the issue will not include any fresh share issuance. Existing shareholders will sell their stakes, while NSE itself will not raise new capital through the public offering.
The board’s approval comes shortly after market regulator SEBI issued a No-Objection Certificate (NOC) for the IPO, removing one of the key regulatory hurdles.
IPO Committee Reconstituted
NSE also confirmed the restructuring of its IPO committee. The panel will be headed by Tablesh Pandey and will include the following members:
- Srinivas Injeti – Public Interest Director
- Mamta Biswal – Public Interest Director
- Justice (Retd.) Abhilasha Kumari – Public Interest Director
- G Shivakumar – Public Interest Director
- Ashishkumar Chauhan – Managing Director & CEO
The committee will oversee key decisions and processes related to the IPO.
IPO Wait Since 2016
NSE, one of India’s two leading stock exchanges, had first applied for an IPO in 2016. However, due to regulatory challenges and pending issues, the listing was delayed for nearly a decade.
Sources familiar with the development indicated that NSE may file its Draft Red Herring Prospectus (DRHP) within the next 3 to 4 months, while the actual listing is expected in 8 to 9 months.
Board Also Approves Coal Exchange Subsidiary
Apart from the IPO approval, NSE’s board also gave a green signal to establish a new coal exchange subsidiary. The proposed exchange may be named:
- National Coal Exchange
- Bharat Coal Exchange
- India Coal Exchange
The company is reportedly planning a capital infusion of ₹100 crore for the subsidiary.
Strong Quarterly Performance
NSE also announced its financial results for the October–December quarter, highlighting strong growth in profitability. One of the major takeaways was a sharp jump in margins, which rose from 40.4% to 75.9% on a sequential basis.
The exchange reported a 15% quarter-on-quarter rise in net profit, which stood at ₹2,409 crore.
Market Significance
The NSE IPO is expected to be one of the most important listings in India’s financial sector, given the exchange’s dominant position in equity and derivatives trading. Investors and market participants have been waiting for years for NSE to finally go public, and the latest board approval has now brought the IPO significantly closer to reality.
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