The National Stock Exchange (NSE) is likely to reduce its initial public offering (IPO) size from the earlier ₹30,000 crore to around ₹25,000-27,000 crore. The IPO is expected to open for subscription on September 18, with a tentative price band of ₹1,700-1,785 per share, according to livemint.com.
The reduction in the IPO size is attributed to the existing shareholders' intention to retain their stakes for better valuation. This has led to a decrease in the Offer for Sale (OFS) portion, which directly impacts the overall issue size. The NSE has not officially confirmed the final size but market participants anticipate the adjustment based on shareholder signals, as reported by livemint.com.
This adjustment comes amid a broader trend of cautious investor sentiment in large public listings, where shareholders prefer to hold on to their shares anticipating higher prices. The NSE IPO was initially projected to be one of the largest in recent years, and a reduction in size could affect its ranking among major market debuts. The tentative price band also positions the IPO as a significant capital-raising event in the Indian stock market.
The subscription window for the NSE IPO is scheduled to open on September 18, with the final issue size expected to be announced shortly before. Market watchers will closely monitor subscription levels and pricing, which will provide clearer indications of investor appetite for this major public offering, according to livemint.com.