NSE expected to price IPO at discount, raising investor concerns

The National Stock Exchange of India, the country’s dominant equities marketplace, is preparing to price its long-awaited IPO at a range that would leave many existing shareholders underwater. The expected band of ₹1,700 to ₹1,785 per share sits meaningfully below the ₹2,000 to ₹2,045 levels at which shares have recently traded in the unlisted market. The numbers behind the repricing Earlier estimates pegged NSE shares north of ₹2,000, with some unlisted market transactions occurring as high as ₹2,400 at historical peaks. The revised range represents roughly a 15% haircut from where shares recently changed hands privately, and more than 25% below the peak. At the upper end of the new band, NSE would carry a valuation of approximately ₹4.42 lakh crore, or about 43 times the previous fiscal year’s earnings. The IPO itself is structured as a pure offer-for-sale of roughly 14.89 crore shares, representing around 5.5% of equity. That’s been trimmed from an earlier planned OFS of about 6%. Total proceeds are expected to land around ₹24,300 crore. Because this is entirely an OFS, every rupee goes to selling shareholders rather than into NSE’s own treasury. SEBI granted approval for the IP...