NSE board clears IPO plan, forms IPO committee under former LIC MD Tablesh Pandey

A man walks past the logo of the National Stock Exchange (NSE) at its headquarters in Mumbai,

• NSE board approves IPO plans, targeting Rs 23,000 crore via offer for sale
• IPO committee formed to oversee listing, DRHP filing expected by March or April
• Board also clears coal exchange subsidiary to boost transparency in coal trading

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The governing board of the National Stock Exchange (NSE) on Friday approved plans to launch an initial public offering (IPO), besides clearing the incorporation of a coal exchange subsidiary.

As part of the IPO process, the board also approved the reconstitution of the IPO Committee, which will oversee activities related to the public issue. The committee will be chaired by non-independent director Tablesh Pandey and will include public interest directors Srinivas Injeti, Mamata Biswal, Abhilasha Kumari, G. Sivakumar, and managing director and CEO Ashishkumar Chauhan.

The IPO committee will spearhead the listing process, beginning with finalising the criteria for appointing merchant bankers and legal advisors who will prepare the draft red herring prospectus (DRHP). Sources indicate that the formal process of IPO will start from next week under the guidance of IPO commitee.

Once the selection criteria are finalised, eligible merchant bankers will be formally briefed, triggering the pitch process—or ‘beauty parade’. According to people familiar with the development, NSE is targeting the filing of the DRHP by end-March or early April. If the September quarter audited numbers are used, the filing could happen by March-end otherwise if delayed it may happen in April with December quarter audited numbers.

NSE IPO to be an OFS, size around Rs 23,000 crore

The proposed IPO will be an offer for sale (OFS) by existing shareholders, with NSE’s equity shares of face value Rs 1 each to be listed on one or more stock exchanges.  Around 4.5 percent of NSE’s equity may come up for sale. At the current price of around Rs 2,000 per share, the issue size could be approximately Rs 23,000 crore.

NSE MD & CEO Ashish Kumar Chauhan recently stated that the exchange prefers an OFS but may consider a fresh issuance of shares only if the target dilution cannot be met through existing shareholders.

The offering will be subject to regulatory approvals, market conditions, and other relevant factors, the exchange said in a regulatory filing. Market regulator Securities and Exchnage Board of India (SEBI) issued No objection Certificate (NoC) for NSE IPO on January 30, which was crucial for filing IPO application before regulator.

NSE made its first attempt to list in 2016, but the exchange was advised to withdraw the plan as regulatory probes gathered pace over alleged violations. The listing of the exchange even reached the Delhi High Court, where NSE and regulator SEBI were made parties.

Moneycontrol had reported on February 3, that NSE Board is meeting on February 6 to clear the IPO process and form a committee to steer the IPO process.

Coal Exchange Subsidiary

Separately, the board approved the incorporation of a coal exchange subsidiary, in line with the Ministry of Coal’s proposed Coal Regulations, 2025. The new entity, proposed to be named National Coal Exchange, Bharat Coal Exchange, or India Coal Exchange—will be set up as a regulated platform for electronic trading of physical coal.

NSE plans to infuse up to Rs 100 crore into the coal exchange subsidiary to meet the minimum net-worth requirements under the proposed rules. The exchange will initially hold a minimum 60 percent stake, with the remaining shareholding expected to be distributed among other shareholders. The subsidiary will require approval from the Securities and Exchange Board of India (SEBI) and subsequent licensing from the Coal Controller Organisation.

The coal exchange aims to bring greater transparency, efficiency, and standardised price discovery to India’s coal market, which currently operates through fragmented and largely opaque channels. NSE said the platform would enable electronic trading of physical coal and could facilitate derivative products in the future, subject to regulatory approval.