The much-awaited initial public offering of the National Stock Exchange (NSE) could be rolled out in the next few weeks since market regulator SEBI is all set to allow the bourse to re-file its prospectus for the share sale.
Sources told that NSE will launch India’s biggest IPO which is likely to be valued at over ₹2 lakh crore. In the unlisted market, NSE’s shares are currently quoting in the broad range of ₹3,000- 4,000 apiece.
SEBI Chairman Ajay Tyagi ordered the exchange to withdraw its offer documents since it got embroiled in the algo trading scandal after the NSE first filed for its IPO with SEBI in December,2016.
Now, after having taken legal opinion, SEBI is firm on allowing NSE to re-file its prospectus. Earlier, the legal opinion was that unless the NSE complied fully with the final SEBI verdict in the algo matter and filled the compliance gaps, its IPO should not be allowed.
The NSE has challenged SEBI’s ₹1,000- crore penalty at the Securities Appellate Tribunal (SAT) and is yet to accept there was any wrongdoing. The Madras High Court stopped short of issuing a stay on NSE’s IPO this year.
The NSE has monopoly over equity derivatives and enjoys nearly 80 per cent EBITDA (earnings before interest, tax, depreciation and amortisation) margins and 93 per cent operating to total income ratio.
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