The National Stock Exchange of India (NSE) is gearing up for its initial public offering (IPO), which is expected to be a substantial ₹23,000 crore offer for sale (OFS). The exchange is likely to file its draft red herring prospectus (DRHP) by the end of March or early April.

After receiving the go-ahead from the Securities and Exchange Board of India (SEBI), the NSE board is anticipated to discuss the IPO proposal at a meeting scheduled for Friday. During the meeting, the board will also likely review the exchange's financial results for the December quarter.

To manage the IPO process, the NSE board is expected to form a dedicated IPO committee, primarily composed of independent directors. This committee will be responsible for finalizing the criteria for appointing merchant bankers and legal advisors to prepare the DRHP. Following the approval of the selection framework, eligible merchant bankers will be briefed, initiating the pitch process. Both domestic and foreign bank-owned merchant bankers are expected to participate.

The IPO will be structured as an OFS, with approximately 4% to 4.5% of NSE's equity being offered. All 190,000 shareholders of the exchange will have the option to participate in the secondary sale as part of the IPO. Several entities are expected to be key sellers in the IPO, including Temasek Holdings Pte, Life Insurance Corporation of India Ltd (LIC), State Bank of India Ltd, and SBI Capital Markets Ltd. LIC holds a 10.72% stake in NSE, while Temasek and SBI Capital each hold approximately 4.5% and SBI holds about 3.2%.

The NSE's listing plans had been on hold since 2016, when the exchange initially filed a DRHP to raise around ₹10,000 crore through an OFS. SEBI withheld its approval due to regulatory concerns related to governance lapses and a co-location case. NSE has since approached the regulator multiple times to seek clearance.

NSE Chairperson Srinivas Injeti stated that SEBI's approval for the IPO marks a significant milestone in the exchange's growth journey, reinforcing confidence in NSE's role in the Indian economy and capital markets.

Ashish Chauhan, CEO, National Stock Exchange has outlined that the IPO will be an offer for sale by existing shareholders and the listing is expected to take place in the coming months.