New Delhi, January 31. In a major breakthrough for India’s largest stock exchange, National Stock Exchange (NSE) CEO Ashish Chauhan announced that the much-awaited IPO will proceed through an Offer for Sale (OFS) route. Speaking exclusively to IANS at a capital city event, Chauhan revealed that draft red herring prospectus (DRHP) preparations will take approximately 3-4 months.
The DRHP stands as the cornerstone document for any IPO, outlining key financials, risks, and business details for potential investors. After over a decade of regulatory hurdles, the Securities and Exchange Board of India (SEBI) has finally greenlit the process, a move Chauhan hailed with gratitude.
“SEBI’s approval after 10 long years is a milestone. We are deeply thankful,” Chauhan stated. NSE, which boasts around 1.91 lakh existing shareholders, will run parallel efforts on DRHP drafting and OFS structuring. Eligible shareholders keen to offload shares via OFS can participate actively.
This development caps years of delays triggered by governance issues and the high-profile co-location scandal. NSE has been striving to list since 2016, but repeated SEBI probes stalled progress. Recent signals from SEBI Chairman Tuhin Kanta Pandey had fueled market optimism.
NSE Chairperson Srinivasan Iyntra described the nod as pivotal for shareholder value creation and reinforcing NSE’s role in fortifying India’s capital markets. As DRHP work ramps up, investors eye NSE’s valuation, potentially rivaling global peers. The exchange’s dominance in equity trading volumes positions it for a blockbuster debut, analysts predict.
With BSE already listed, NSE’s entry will complete the duopoly picture, enhancing market depth and liquidity. Stakeholders await pricing and allotment details, but the IPO fever has gripped Dalal Street.