NSE IPO: From issue size to price band, here are the changes since filing DRHP

The muchawaited initial public offering of the National Stock Exchange NSE has undergone several changes since the bourse filed its Draft Red Herring Prospectus DRHP in June with the most significant being the reduction in the issue sizeThe bourse has cut the offerforsale OFS to 1264 crore equity shares from 149 crore shares proposed in the DRHP roughly a reduction of 15 per cent Since the IPO is entirely an OFS the cut in the number of shares directly brings down the overall issue sizeAt the newly announced price band of Rs 17001785 per share the IPO is estimated to raise Rs 2149422569 crore This is significantly lower than the earlier estimate of around Rs 30000 croreThe smaller issue size also changes its position among Indias largest IPOs At the upper end of the price band the issue is estimated at Rs 22569 crore making it the countrys secondlargest public issue after Hyundai Motor Indias Rs 27870crore IPO in 2024 It will however be larger than the Rs 21000crore IPO of Life Insurance Corporation of India LIC launched in 2022The price at which NSE is coming to the market has also been revised The IPO was earlier expected to be priced at around Rs 20002100 per share but the price band has now been fixed at Rs 17001785 per shareThe lower price band along with the reduced OFS means the exchanges implied valuation will be Rs 42 lakh crore lower than earlier estimate of Rs 5 lakh croreThe change in issue size is mainly reflected in the revised sharesale plans of several existing shareholders For instance State Bank of India SBI has reduced its proposed sale from 247 crore shares to 16 crore shares MS Strategic Mauritius Ltd has cut its offer from 16 crore shares to 11 crore sharesSimilarly Bank of Baroda has lowered its proposed sale from 109 crore shares to 769 lakh shares while Stock Holding Corporation of India Ltd has reduced its offer from 108 crore shares to 6187 lakh shares General Insurance Corporation of India has slashed its proposed sale from 106 crore shares to 6187 lakh shares National Insurance Company Ltd has reduced its offer from 60 lakh shares to 40 lakh shares and Mahagony Ltd has trimmed its offer size to 30 lakh from 50 lakhSome shareholders however have retained their earlier proposed sale Canada Pension Plan Investment Board continues to offer 118 crore shares while Aranda Investments Mauritius New India Assurance Company Ltd and United India Insurance Company Ltd have retained their offer at 112 crore 105 crore and 60 lakh shares respectivelyThe revised documents also have SBI Capital Markets Ltd as a selling shareholder which was not part of the list in the DRHPThe lower pricing of the IPO could be the reason for some selling shareholders to cut their offer size as they believe they could command a better valuation by offloading their stake at a later stageThe IPO is entirely an OFS meaning NSE is not issuing any new shares and will not receive any proceeds from the public issue The money raised will instead accrue to the existing shareholders selling their sharesThe issue will open for subscription on September 17 and close on September 21 with anchor investor bidding scheduled for September 16 NSE shares are slated to make their market debut on September 24This story has been sourced from a third party syndicated feed agencies Midday accepts no responsibility or liability for its dependability trustworthiness reliability and data of the text Midday managementmiddaycom reserves the sole right to alter delete or remove without notice the content in its absolute discretion for any reason whatsoever