NSE is preparing investor roadshows across Asia, the U.S., UAE and London as it pitches its IPO as a play on India’s expanding capital markets and rising retail participation.
India’s National Stock Exchange is stepping up preparations for its IPO with investor meetings due to start next week and a listing expected around October, according to Reuters sources and an investor presentation reviewed by the news agency. The exchange is pitching the offer to more than 30 global investors as a bet on India’s rapid financial expansion, deeper retail participation and long-term growth across equities, derivatives and bond markets. NSE, India’s largest exchange and the world’s most active derivatives bourse, filed draft papers for the IPO last month. Reuters previously reported the issue could be about $3.3 billion, while the draft papers say existing shareholders are expected to sell around 6% of NSE’s shares. The exchange has told investors it sees annual turnover growth over the next five years of 12% in cash equities and equity futures, 10% in equity options, 15% in currency derivatives, 20% in interest-rate derivatives, 10% in commodity derivatives and 10% in corporate bonds, based on its internal assessments. NSE said India’s capital-markets penetration remains low compared with other major economies, leaving room for expansion. It currently holds 100% market share in equity futures, 93% in the cash market and 75% in equity options, according to the presentation. The IPO comes after a roughly decade-long delay tied to litigation over equitable market access. NSE has applied to settle the remaining proceedings by paying about $158 million, its draft papers show. The filing also warns that policy, tax and regulatory changes, rupee depreciation and weaker market conditions could hurt trading volumes, demand and foreign investor participation.