MC EXCLUSIVE Merchant bankers begin NSE IPO pitches; legal advisor likely to be finalised this week

Merchant bankers begin NSE IPO pitches; legal advisor likely to be finalised this week

• NSE begins selection of merchant bankers for its IPO process
• SEBI issued No Objection Certificate for NSE IPO on January 30
• IPO likely to be an offer for sale, estimated at Rs 23,000 crore

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The much-awaited initial public offering (IPO) of the National Stock Exchange of India (NSE) has begun to gather pace, with the exchange initiating the selection of merchant bankers and law firms for the proposed share sale. According to sources familiar with the development, presentations by investment banks started on Monday and the process is expected to be concluded by Thursday or Friday.

Several domestic and global investment banks have been invited to pitch for the mandate. Sources indicated that on day one more than 10 merchant bankers participated in the process with several more in the queue. After the presentations, NSE will shortlist merchant bankers and forward the names to the IPO committee headed by former LIC Managing Director Tablesh Pandey.

The committee will review the shortlisted candidates and issue formal letters of appointment to those selected. Their appointment will mark a key milestone in the IPO process, as the investment banks will be responsible for structuring the offer, coordinating with regulators, and preparing the draft red herring prospectus (DRHP).

Once merchant bankers are appointed, the process of preparing the DRHP will formally begin. According to people aware of the process, the DRHP could be finalised and filed within three to four months after the appointment of merchant bankers and legal advisors.

Speaking on the side-lines of an event celebrating 30 years of the NIFTY 50 on Monday, NSE Managing Director and CEO Ashish Kumar Chauhan said, "The process is still on for determining the merchant bankers. It should happen by the month of March”.

In parallel, NSE is also expected to finalise the legal advisor for the IPO by the end of this week. The advisor will assist in drafting offer documents and ensuring compliance with regulatory requirements. The appointment of Independent Chartered Account is also expected to be finalised soon.

In an email reply to queries. NSE said: “Pursuant to the NOC issued by SEBI, the board approved an initial public offering of the Company through an offer for sale on 6 February 2026. No further comments at this stage”.

The proposed IPO is expected to be entirely an offer for sale (OFS) by existing shareholders, with equity shares of face value Rs 1 each proposed to be listed on one or more stock exchanges. Market participants estimate that around 4.5 percent of the exchange’s equity may be offered in the issue. At the current unlisted market price of roughly Rs 2,000 per share, the IPO size could be close to Rs 23,000 crore.

SEBI issued NoC on January 30

The development follows the No Objection Certificate (NoC) issued by the Securities and Exchange Board of India (SEBI) on January 30, clearing a key regulatory hurdle for the exchange to proceed with its long-delayed listing plans.

Earlier it was believed that approval of NSEs settlement from High Powered Advisory Committee (HPAC) on Settlement may be the key for issuance of NOC.

But since this was taking too long, and SEBI’s key departments handling the matter had agreed in principle to settle the issue under the consent mechanism, the NOC was issued, delinking it from the settlement process.

NSE had earlier attempted to go public in 2016, but the plan was put on hold after regulatory investigations into alleged violations, including issues related to an alleged scam involving co-location facilities. The matter also reached the Delhi High Court, where both NSE and SEBI were made parties during the proceedings.

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