NSE wants to launch IPO not for share price discovery but for transparency sake
National Stock Exchange (NSE) on Friday said it wants to launch its IPO, which could beat Hyundai's record of largest public issue, not for price discovery of its shares but for the sake of transparency and accountability.
“The IPO will increase transparency and accountability. We are valued at around Rs 4.75 lakh crore in the unlisted market and as India's largest exchange we should be accountable to the market," Sriram Krishnan, Chief Business Development Officer, NSE, told reporters in New Delhi on Friday.
He said the IPO is not about price discovery as the bourse doesn't have a promoter. «We are a quasi-commercial organization,» Krishnan said.
Having about 20,000 shareholders, NSE shares are among the most popular ones in the unlisted market, where it is trading around Rs 2,000 per unit following a bonus issue in the ratio of 4:1.
The exchange's current market capitalization is near Rs 4.75 lakh crore and if NSE decides to offload 10% equity in the IPO, the size of it could be around Rs 47,500 crore — making it the biggest-ever public issue in India.
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