The CEO of the National Stock Exchange of India (NSE), Ashish Kumar Chauhan, announced that demand for the IPO of this exchange is unexpectedly high. He also noted that the size of the main book for this offering has decreased to about ₹6,250 crore, whereas it was previously planned to reach ₹9,000 crore.
Details of the National Stock Exchange of India IPO
Ashish Kumar Chauhan stated, "The demand for the National Stock Exchange of India IPO is unexpectedly large. I cannot share the numbers at this moment. We are still negotiating with all commercial bankers." According to him, the size of the main book has decreased from the previous amount and is now around ₹6,250 crore.
The IPO of the National Stock Exchange of India is set to open for registration on September 17 and will continue until September 21. Additionally, the auction for anchor investors is scheduled to take place on September 16. The exchange has set the price per share between ₹1,700 and ₹1,785. This offering will fully include the sale of existing shares amounting to 12.64 crore by current shareholders, and no new shares will be issued by the NSE.
Expectations of Profitability and Growth of the Exchange
Chauhan had previously stated in discussions that the National Stock Exchange of India expects to maintain high profit margins and to reach more investors by expanding its product offerings and entering new geographies. He said, "Overall, over the past years, the National Stock Exchange of India has maintained EBITDA margins of around 77 to 79 percent, which translates to a net profit after tax of about 55 to 57 percent."
The CEO of NSE attributed these high margins to the platform-based nature of the stock exchange business, where a significant portion of costs remains fixed. He added, "NSE has been able to control its two major cost areas, namely information technology and workforce, while also expanding its operations."
Chauhan also pointed out that adding new products and expanding the investor base without a proportional increase in fixed costs can help the exchange maintain its margins. He said, "If you can create new products or increase your sales, this helps net profit and pre-tax profit, improving EBITDA and PAT margins."
Chauhan also emphasized the growth of NSE's investor base since its inception in 1994. From about one million investors at that time, NSE now has around 13 crore unique investors and 27 crore investment accounts. He mentioned that India's investor base could further expand with increasing wealth and the growth of the middle class.
The minimum bid amount for the NSE IPO has been set at eight shares, and any additional amount will also be in multiples of eight. At the upper price limit, the size of this offer reaches about ₹22,569 crore. The shares are set to be listed on the BSE.
