NSE Starts $3 Billion IPO Marketing Next Week

National Stock Exchange of India Ltd. will begin formal marketing for its initial public offering as soon as next week, people familiar with the matter said. The exchange, which operates the world's largest derivatives market by volume, targets a September listing.

NSE plans investor meetings across the US, London, Singapore, Hong Kong, the Middle East and India, the people said. The company has filed a draft prospectus with India's market regulator for an offering consisting entirely of secondary share sales. Existing holders plan to sell as many as 148.9 million shares, roughly 6% of the company, according to the filing.

The IPO could raise as much as $3 billion, part of a wave of large Indian offerings alongside Reliance Industries' Jio Platforms and SBI Mutual Fund. At a gray market valuation of more than $55 billion, according to unlisted stock platform UnlistedZone.com, selling the entire stake on offer could raise about 306 billion rupees. That would surpass the 278.7 billion-rupee listing of Hyundai Motor's Indian unit in 2024, the country's largest IPO on record.

About 20 banks are working on the sale, including Morgan Stanley and Citigroup. MS stock page carries an Alpha Score of 57, and C stock page scores 56, both rated Moderate within the Financials sector.

Deliberations are ongoing and details of the size, valuation and timing could still change, the people said. NSE declined to comment beyond reiterating that it has filed a draft prospectus. The Securities and Exchange Board of India has yet to approve the IPO. A date for final pricing has not been set.