NSE IPO Update: Temasek, LIC & Canadian Pension Fund Among 20 Investors to Sell Stakes Worth $2.75 Billion

Singapore's Temasek, India's LIC, and the Canada Pension Plan Investment Board are part of a group of 20 investors planning to sell stakes in the National Stock Exchange (NSE) IPO, as per The Reuters report. 

This significant share sale is expected to be valued at $2.75 billion, based on an estimated total valuation of $55 billion for the NSE. 

Major Shareholders to Offload Stakes 

The NSE, India's largest stock exchange, is set to go public this year. Among the notable shareholders looking to offload stakes are Temasek, LIC, and the Canadian Pension Fund.  

The IPO will see existing shareholders selling a 5% stake, marking a major financial event in the Indian market.  

The NSE's listing follows a lengthy delay due to litigation with the Securities and Exchange Board of India (SEBI). 

Financial Performance and IPO Filing 

The NSE has demonstrated strong financial performance, with its quarterly after-tax profit rising 15% to ₹2,408 crore in the third quarter ending December 31.  

This growth was primarily driven by improvements in derivatives trading. The exchange's consolidated revenue from operations increased by nearly 7% from the previous quarter. 

Read More: NSE Lowers Indian Gas Exchange Holding to 25% by Selling 1% Stake for Regulatory Compliance! 

Complexity of the Offering 

With 1,77,807 shareholders, the NSE is India's largest unlisted company by number of investors, adding complexity to the offering process.  

Institutional shareholders include LIC, SBI, Temasek Holdings, Morgan Stanley, and CPPIB. As per the report, the NSE plans to file its draft prospectus with SEBI by next month, following the declaration of its financial results. 

Conclusion 

The NSE's upcoming IPO, involving major stakeholders like Temasek, LIC, and the Canadian Pension Fund, represents a significant development in the Indian financial market. With a valuation of $2.75 billion, the share sale is poised to be one of the largest in India this year, alongside Reliance Jio Platforms' offering. 

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