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NSE IPO in 3-4 Months, Will Be Offer for Sale, Says CEO Ashishkumar Chauhan

The National Stock Exchange's long-awaited IPO process is finally moving forward after SEBI's regulatory approval. CEO Ashishkumar Chauhan stated it will take three to four months to prepare the draft Red Herring Prospectus. The IPO will be structured as an Offer for Sale, allowing approximately 1.91 lakh existing shareholders to participate. This marks a significant milestone after over a decade of delays due to regulatory concerns.

Key Points: NSE IPO Draft in 3-4 Months, to Be Offer for Sale

  • DRHP preparation in 3-4 months
  • IPO will be an Offer for Sale (OFS)
  • SEBI approval ends decade-long delay
  • Process involves 1.91 lakh existing shareholders
2 min read

NSE IPO will be OFS, draft papers to be prepared in 3-4 months: CEO

NSE CEO says DRHP for long-awaited IPO will be ready in 3-4 months. The IPO will be an Offer for Sale for existing shareholders.

"After 10 years, SEBI has agreed to start the IPO process. We thank SEBI for this. - Ashishkumar Chauhan"

New Delhi, Jan 31

National Stock Exchange Managing Director and Chief Executive Officer Ashishkumar Chauhan said on Saturday that it will take around three to four months to prepare the draft Red Herring Prospectus, which is a key document required for launching the IPO.

Speaking to IANS on the sideline of an event here, Chauhan thanked SEBI for clearing the way after nearly a decade of delay.

"After 10 years, SEBI has agreed to start the IPO process. We thank SEBI for this," he stated.

He said that along with preparing the DRHP, NSE will also work in parallel on the offer for sale (OFS) part of the IPO.

"It will take 3-4 months for the draft of Red Herring Prospectus to be made," Chauhan told IANS.

The exchange currently has around 1.91 lakh existing shareholders, and those who are eligible and willing to sell their shares through OFS will be able to participate in the process.

"In parallel, there are 191,000 existing shareholders. Those who are eligible and want to sell their shares in OFS, we will collect those shares in parallel for offer for sale,'' he mentioned.

The approval from SEBI marks a major milestone for NSE, whose IPO plans had been stuck for more than 10 years due to regulatory concerns, including issues linked to governance lapses and the co-location case.

With the regulator's green signal now in place, NSE will move ahead with finalising the structure and timeline of its public issue.

Earlier, NSE Chairperson Srinivas Injeti had described SEBI's approval as a significant step in the exchange's growth journey.

He said the move opens a new chapter of value creation for stakeholders and reflects confidence in NSE's role in strengthening India's capital markets.

NSE has been trying to list its shares since 2016, but the process was repeatedly delayed due to regulatory probes.

Recently, SEBI Chairman Tuhin Kanta Pandey had indicated that approval for NSE's IPO was expected soon, raising hopes among market participants.

- IANS

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Reader Comments

P
Priya S
A 10-year delay due to "governance lapses" is concerning. While the IPO is good news, I hope SEBI's approval means all those old issues are truly resolved. Investors need complete transparency. The NSE must lead by example on corporate governance.
R
Rohit P
This is huge for the Indian markets. NSE listing will boost sentiment and show the world the maturity of our financial ecosystem. The 1.9 lakh existing shareholders must be thrilled! Hope the pricing is fair for retail.
S
Sarah B
Interesting development. As someone who follows global markets, exchanges like NYSE and NASDAQ are listed and highly valued. NSE's IPO could be a landmark event for India, attracting more foreign investment into the country's financial infrastructure.
V
Vikram M
3-4 months for DRHP means we might see the IPO by end of this financial year. Perfect timing if you ask me. Market is at an all-time high, investor appetite is strong. This could be one of the biggest IPOs of the year. Time to start saving up for the application! 💰
K
Kavya N
My father is one of the small shareholders from way back. Our entire family has been waiting for this news for years. Finally some clarity and a timeline. Hope the process is smooth now. Thank you, SEBI, for unblocking this.

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