NSE IPO: ₹30,000 crore mega issue could break records of these two mammoth public offers

NSE IPO: The NSE IPO will comprise entirely an offer for sale (OFS) of up to 149 million equity shares by existing institutional shareholders. AI Quick ReadNSE IPO: The much-awaited National Stock Exchange's initial public offering (NSE IPO) is all set to break the records of these two mammoth public offers - Hyundai Motor IPO and LIC IPO.

The NSE IPO is expected to raise around ₹30,000 crore, making it larger than the other two major public offerings. The Hyundai Motor India IPO, launched in October 2024, was valued at approximately ₹27,870 crore. Meanwhile, the Life Insurance Corporation of India (LIC) IPO, which entered the primary market in May 2022, raised more than ₹21,000 crore through its public issue.

India's largest ever IPO opened for subscription on 15 October, 2024 and closed on 17 October.

The South Korean automaker offered its shares in a price band of ₹1,865– ₹1,960 apiece through its ₹27,870-crore mega IPO, making it the largest public issue in India at the time and surpassing LIC’s ₹21,000-crore IPO.

The IPO comprised entirely an offer for sale (OFS) of 14.2 crore shares, with the entire stake being offloaded by its parent company, Hyundai Motor Global.

Shares of Hyundai Motor India made a weak debut on the stock exchanges on October 22, listing at ₹1,934 on the NSE, a 1.32% discount to the IPO issue price of ₹1,960 per share.

The Indian subsidiary of the South Korean automaker received a muted response from retail investors during the IPO. However, robust demand from Qualified Institutional Buyers (QIBs) helped offset the tepid retail participation, with the QIB portion being subscribed 6.97 times, or nearly 700%.

Hyundai Motor India appointed Kotak Mahindra Capital Company Ltd., HSBC Securities & Capital Markets Pvt. Ltd., JPMorgan India Private Ltd., Citigroup Global Markets India Private Ltd., and Morgan Stanley India Company Pvt. Ltd. as the book-running lead managers for its IPO.

KFin Technologies Ltd. acted as the registrar to the Hyundai Motor India IPO.

The Life Insurance Corporation of India (LIC) IPO opened for subscription on May 4, 2022, and closed on May 9, 2022. The ₹21,008.48-crore public issue was entirely an Offer for Sale (OFS), with the Government of India as the selling shareholder. The issue price was fixed within a band of ₹902– ₹949 per equity share.

LIC share price made a muted debut on the stock exchanges on May 17, 2022, with the stock listing at ₹872 per share on the NSE. This represented a discount of around 8% to the IPO issue price of ₹949 per share.

India’s largest IPO at the time concluded with the issue being subscribed nearly three times. The offering received strong participation from retail and institutional investors, while interest from foreign investors remained relatively subdued.

Axis Capital Ltd. acted as the book-running lead manager for the issue, while Kfin Technologies Ltd. served as the registrar to the IPO.

The NSE IPO will comprise entirely an offer for sale (OFS) of up to 149 million equity shares by existing institutional shareholders. The issue represents around 6% of the National Stock Exchange’s paid-up equity capital, with no fresh shares being issued by the exchange.

While the final issue size and valuation are yet to be determined, market estimates peg the IPO at around ₹30,000 crore. At this size, NSE could command a market capitalisation of more than ₹5 lakh crore, potentially placing it among India’s top 10 most valuable listed companies by market value.