NSE Submits Updated Draft Red Herring Prospectus for Proposed IPO

The National Stock Exchange (NSE) on Wednesday submitted its updated draft red herring prospectus (UDRHP) to SEBI and stock exchanges. Meanwhile, the size of its proposed IPO has been reduced as public-sector insurance companies and Morgan Stanley have reduced the number of shares to be sold through'offer-for-sale'( OFS). The issue size is now likely to be around Rs 23,000 crore, compared to around Rs 30,000 crore at the time of filing of the original DRHP by NSE in June. The IPO will be entirely OFS (offer for sale), with existing shareholders selling their shares and NSE not receiving any money from the issue. The original DRHP proposed to sell 14.89 crore shares, which is about 6% of NSE's equity. According to media reports, some of the participating PSU insurers have reduced their stake in the proposed sale to 1 crore shares of Origin Insurance Corporation of India (IDIC), while General Insurance Corporation of India (GIC) has offered up to 5 crore shares.