PE-backed NSE gets board nod for IPO through offer for sale

Ahead of its IPO, leading stock exchange NSEs board has decided that the public issue will be in the form of an offer for sale by shareholders while the directors have approved issuance of bonus shares, stock split and a dividend payout for the existing investors.

NSE plans to get listed in India as well as abroad. It will file IPO papers with market regulator Sebi for the domestic public issue by January 2017 while the same will be done for overseas listing by April next year.

The exchange has already formed a listing committee to expedite the process. It has roped in four merchant bankers -- Citigroup, Morgan Stanley, JM Financial Institutional Securities and Kotak Mahindra Capital Company -- to manage its upcoming initial public offer (IPO).

At its board meeting on October 4, NSE has decided that its IPO will be in the form of an offer for sale (OFS) of shares by the existing shareholders.

Besides, the board announced an interim dividend of Rs 79.50 per share of Rs 10 each for 2016-17.

The record date to determine the eligibility for payment of the interim dividend is fixed as October 17. The dividend will be paid by October 31.

Further, NSEs board has decided to issue one bonus share of Rs 10 each for every 10 shares of Rs 10 each held by the shareholders.

The number of shares after the bonus issue will rise to 4.95 crore shares from the existing 4.50 crore. "Share premium required for implementing the bonus issue is Rs 4.50 crore.

Share premium account as on March 31, 2016 was Rs 40 crore," NSE said, adding that bonus shares will be credited by November 30. The board has also decided "sub-division of shares of Rs 10 into shares having a face value of Re 1 each subject to the approval of the shareholders in the general meeting and regulatory approvals, if any.

The record date for the same will be announced later". The decision was taken "keeping in mind future corporate actions the exchange may undertake in compliance with applicable regulations in future". Its authorised share capital of Rs 50 crore will remain unchanged, post stock split. The National Stock Exchange (NSE) said the splitting of shares is expected to be complete by December 15, subject to regulatory and shareholder nod. NSE has reportedly approached the government and Sebi to bring in norms for self-listing.

Regulations of the Securities and Exchange Board of India (Sebi) do not provide for self-listing of a stock exchange and the watchdog has so far said no to considering the matter. The exchanges closest competitor, BSE, has already filed draft prospectus with Sebi to float an IPO.

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