Summary of this article
NSE considers reducing upcoming IPO size to Rs 25,000 crore.
Unlisted NSE shares face a mandatory six-month lock-in period.
Hyundai Motor India will retain the largest Indian IPO title.
The National Stock Exchange's (NSE) much-awaited initial public offering (IPO) is likely to witness a structural change days ahead of its launch. According to a report by the Economic Times which cited sources privy to the matter, NSE is considering reducing the size of its much-awaited IPO to around Rs 24,000 crore to Rs 25,000 crore.
The issue size was estimated to be around Rs 30,000 crore earlier. Notably, the offer-for-sale by selling shareholders could now make up five per cent of the exchange's paid-up capital, reducing from nearly six per cent as was planned earlier.
NSE's Unlisted Shares Enter In Lock-In
Ahead of the public issue, the unlisted shares of NSE officially entered the lock-in period on September 8, 2026. The trading price before the lock-in phase was hovering around Rs 2,040, according to data from various platforms tracking the demand for unlisted shares. However, despite these elevated levels in the unlisted space, the price band for the upcoming public issue is likely to be set at around Rs 1,750, according to the report.
Under Securities and Exchange Board of India (Sebi) guidelines, shares held by non-promoters before an IPO are subject to a mandatory six-month lock-in period after the stock debuts on the bourses. This means that anyone holding NSE shares from the unlisted market is legally barred from selling them on listing day. Additionally, since the unlisted shares were trading near Rs 2,040 just before the lock-in period kicked in, recent buyers in the unlisted space might incur a loss if the stock is actually priced around Rs 1,750 and falls further after listing.
NSE OFS Restructuring Likely
As many as 11 investor selling shareholders are expected to pare their stake in the exchange by participating in the offer for sale. However, if the overall size of the IPO reduces, it remains to be seen which of these selling shareholders will alter the size of their respective stake sales.
The key selling shareholders proposing to sell a portion of their holdings include State Bank of India, MS Strategic (Mauritius), Canada Pension Plan Investment Board, Aranda Investments (Mauritius), Bank of Baroda and Stock Holding Corporation of India.
Hyundai Motors To Retain Largest IPO Crown?
Hyundai Motor India is expected to retain its title of being India's largest initial public offering to date if NSE officially reduces the size of its much-anticipated issue. The exchange was widely expected to pip the automaker with an issue size of Rs 30,000 crore.
Following Hyundai Motor India's Rs 27,870 crore issue, other large historical public offerings in the Indian market include Life Insurance Corporation of India and Paytm (One97 Communications). However, Jio Platforms is emerging as the other major contender to challenge Hyundai's record public issue, with its proposed issue of around Rs 37,000 crore.
NSE IPO September Debut Likely
The exchange is aiming to launch the initial public offering in the third week of September and list on the bourses in the fourth week, according to the report by the Economic Times. The exchange received consent from Sebi to proceed with the issue on September 4.
The company reportedly plans to wrap up the entire bidding process before the start of Pitru Paksha on September 26. During the Pitru Paksha period, many investors and businesses avoid launching new ventures, making major purchases, or participating in new public issues as the time is considered a solemn period dedicated to paying homage to ancestors.
Amid all these anticipated changes, investors continue to eagerly await official announcements from the exchange's end. NSE’s listing marks the culmination of a decade-long wait and presents a fresh opportunity for market participants to own shares of one of the two exchanges in India at a pre-listing stage.
