NSE public issue size may reduce to Rs 25,000-27,000 crore as some shareholders withdraw from OFS

The National Stock Exchange NSE might look to curtail its offer for sale OFS to 52 to 55 per cent in its proposed initial public offering IPO after some of the shareholders have backed out reported news agency PTIAs per the draft papers NSEs offering was structured entirely as an OFS of up to 1489 crore shares roughly 6 per cent of the exchanges paidup capitalSome of the shareholders believe they could get a better valuation for the shares post the listing and are reluctant to offload their stake during the IPOThe stock exchange had earlier proposed an OFS of 6 per cent in its massive Rs 30000 crore IPO However with the latest development the companyrsquos overall issue size might truncate to Rs 2500027000 croreAt this size NSE may fall short of becoming Indias largestever public offering Hyundai Motor Indias IPO at Rs 27870 crore currently holds the record of largestever public offering in the country and with the reduced size NSE might be relegated behind the automakerTo drive the participation from retail investors the stock exchange is making the issue attractive with pricing being structured to provide greater participation and benefit to small investors in the OFS The revised IPO price band is expected to be in the range of Rs 17001785 per share against an earlier estimated of Rs 2000 per shareNSE listing likely on September 25The NSE IPO is likely to open for public subscription on September 18 and close on September 22 with the shares are likely to be listed on September 25 on the Bombay Stock Exchange as per the PTI reportThe stock exchange aims to list before the Pitru Paksha period that begins on September 26 as the general perception is to avoid undertaking new ventures Pitru Paksha is a 16day long period when Hindus pay homage to their ancestors through prayers and food offeringsNSE gets SEBI nodLast week markets regulator Securities and Exchange Board of India SEBI had given its approval to NSE for the public issue NSErsquos IPO plan had been stalled for nearly a decade due to regulatory hurdles including the colocation controversyAccording to PTI NSE had filed its draft prospectus with SEBI in June but the approval timeline slipped after SBI Capital Markets was added to the list of selling shareholders This change that triggered a fresh 21day public feedback window on the revised documentsSince the issue is entirely an offer for sale proceeds will flow to selling shareholders rather than to the exchange itselfAmong the top selling shareholders State Bank of India will offload up to 248 crore shares followed by MS Strategic Mauritius Limited with 160 crore sharesOther key selling shareholders include Canada Pension Plan Investment Board Aranda Investments Mauritius Pte Ltd Bank of Baroda Stock Holding Corporation of India Ltd General Insurance Corporation of India The New India Assurance Company National Insurance Company and United India Insurance CompanyHowever it is not known which shareholders have backed out of the OFSThe grey market premium of NSE fallsThe grey market premium of the stock exchange declined sharply The GMP of the NSE IPO has witnessed a sharp correction falling to Rs 221 on September 8 from Rs 310 on September 5 The grey market is a parallel market that is not backed by SEBI or the stock exchanges but it provides investors with an idea of how much the prices of a share are expected to increase post listing