NSE aims to file IPO papers by March end: report

National Stock Exchange of India Ltd (NSE), the country’s largest exchange, plans to file its draft prospectus for the much-awaited public listing by the end of March, two people familiar with the matter said.The exchange is in talks with investment bankers and law firms to finalize the prospectus and gauge investor interest in what could be one of India’s biggest ever IPOs, the sources said.

NSE did not indicate how many of its shares would be listed on the stock exchange. A platform that trades NSE’s unlisted shares estimates the exchange’s total value at $55 billion.Formal appointments of bankers and lawyers will follow a no-objection certificate from market regulator Securities and Exchange Board of India (SEBI), a second source said, confirming that initial talks have begun.

NSE did not respond to a request for comment on Monday.

On Saturday, the SEBI chairman said the regulator could “possibly” grant the required approval for NSE’s listing this month.

LONG DELAYED LIST India’s largest exchange and the most active derivatives exchange in the world has been trying to list since 2016. The approval has been delayed by regulatory investigations into its conduct in providing fair market access for traders through its co-location facilities.

The case is currently pending before the Supreme Court of India.

Last year, NSE offered to settle the case by paying 13.87 billion rupees ($154 million), and the regulator is still considering the settlement.

Ahead of the public offering, NSE’s unlisted shares are trading at over 2,000 Indian rupees ($22.16) each, according to Unlisted Arena, an Indian platform that facilitates the buying and selling of unlisted shares, valuing the exchange at 5 trillion rupees, or $55 billion.

Listed smaller rival BSE Ltd is trading at Rs 2,767 per share.

NSE has 177,807 shareholders prior to the listing, making it India’s largest unlisted company by number of investors, adding to the complexity of the public listing.

Lawyers drafting the IPO documents are working on mechanisms to ensure fair exit opportunities for this large shareholder base, one of the sources said. Preference for an exit is likely to go to banks and foreign institutions that have held NSE shares for a long time, the person added.

NSE’s major institutional shareholders include Life Insurance Corporation of India, State Bank of India, Temasek Holdings, Morgan Stanley and Canada Pension Plan Investment Board.

($1 = 90.2025 Indian Rupees)