The National Stock Exchange of India (NSE) allocated shares worth ₹67.46 billion (equivalent to $703.04 million) to key investors on Wednesday. This allocation includes Norway's and Abu Dhabi's sovereign wealth funds and has taken place ahead of the IPO of this exchange.
Details of the Share Allocation
The allocated shares were priced at ₹1,785 per share, at the highest level of the IPO price. Life Insurance Corporation of India (LIC) is recognized as the largest investor in this round, purchasing shares worth ₹4 billion, equivalent to 5.93% of the total allocated shares.
In addition to LIC, other major investors include the Abu Dhabi Investment Authority, the Government Pension Fund of Norway, and Fidelity Asset Management. This IPO, estimated at $2.3 billion, is considered one of the largest initial public offerings in India's history.
Dimensions and Implications of the IPO
The IPO of the National Stock Exchange of India fully includes the sale of shares by current shareholders, and the exchange will not receive any proceeds from it. This offering will open for public registration on Thursday and will continue until Monday. Up to 50% of the shares in this IPO are allocated for qualified institutional buyers, including key investors, and approximately 35% of the shares are designated for retail investors.
The National Stock Exchange of India has collaborated with 20 investment banks for this IPO, including Kotak Mahindra Capital, SBICAPS, Pentamount, and Axis Capital, as well as major global banks led by Morgan Stanley, Citigroup, and HSBC.
This IPO comes as India's primary market has been booming with the entry of large issuers, including Jio Platforms, which is backed by billionaire Mukesh Ambani, and it is expected that this company will also list by the end of this year.
