India’s Biggest Bourse Said to Seek Arrangers to Manage IPO

  • NSE said to meet investment banks on Tuesday, Wednesday
  • Offer document for domestic listing will be filed by January

The National Stock Exchange in Mumbai.

Photographer: Dhiraj SIngh/Bloomberg

National Stock Exchange of India Ltd. has asked banks to help the nation’s biggest bourse sell shares in an initial public offer, people with knowledge of the matter said.

The exchange has called investment banks for a meeting on Tuesday and Wednesday for a listing, the people said, asking not to be identified as the information is private. It will file a draft offer document with the market regulator for a domestic listing by January and by April for selling shares overseas, it said in a statement in June. An NSE spokesman declined to comment when reached by phone.

As many as 10 investors in the exchange, including Tiger Global Five Holdings, Norwest Ventures Partners X FII - Mauritius and State Bank of India, have urged the bourse to accelerate plans to go public. The NSE will compete with its older rival BSE Ltd., Asia’s oldest stock exchange, for a listing. The Multi Commodity Exchange of India Ltd., the only listed Indian exchange, is valued at 51 billion rupees ($764 million).

The NSE has set up a panel to help with the plan to file an offer document for its domestic listing, Chief Executive Officer Chitra Ramkrishna said last month. The exchange hasn’t abandoned its plan to list on itself. It has sought the regulator’s approval even as rules issued in November by the Securities & Exchange Board of India do not permit self-listing by exchanges.

Other shareholders include Goldman Sachs Strategic Investments Ltd., Morgan Stanley Strategic (Mauritius) Ltd. and Citigroup Strategic Holdings Mauritius Ltd., according to the NSE’s website. IFCI Ltd. on July 4 said it had sold part of its stake in NSE at 3,950 rupees per share, valuing the exchange at 177.85 billion rupees, according to data compiled by Bloomberg.

The exchange had reported a net income of 4.39 billion rupees for the year ended March compared with 7.8 billion rupees for the previous year, according to its website.

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