NSE files UDRHP for its mega IPO; check key changes in issue size, OFS stake and other details

IPO-bound National Stock Exchange of India (NSE) on Wednesday filed its updated draft red herring prospectus (UDRHP) with SEBI and the stock exchanges, marking a fresh step in its proposed initial public offering, sources said. The issue size is now likely to be around Rs 23,000 crore, lower than the roughly Rs 30,000 crore envisaged when the exchange filed its original DRHP in June.

The IPO will continue to be entirely an offer-for-sale (OFS), with existing shareholders selling their shares and the NSE not receiving any proceeds from the issue. The original draft had proposed the sale of 14.89 crore shares, or about 6 per cent of the exchange's equity, but the updated filing reflects a smaller offer after some shareholders cut the number of shares they plan to sell.

Sources said some of the public sector insurance companies participating in the IPO have reduced their proposed stake sale. In the original draft, General Insurance Corporation of India Ltd had offered up to 1.066 crore shares, while New India Assurance Ltd had proposed to sell 1.05 crore shares.

National Insurance Company and United India Insurance Company had each proposed to sell 60 lakh shares. Together, the four insurers had planned to sell about 3.37 crore NSE shares. Separately, sources said MS Strategic (Mauritius) Ltd, an entity linked to Morgan Stanley, has also reduced the number of shares it plans to offer. The original draft had provided for MS Strategic to sell 1.60 crore shares.

The reduction in the offer-for-sale comes despite strong investor interest in the proposed listing. Sources said the institutional book has seen interest of around Rs 85,000 crore, indicating strong demand from large investors. The updated filing is a key step in the NSE's long-awaited listing, nearly a decade after it first began the IPO process.