The National Stock Exchange of India on Friday cleared the decks for its long-awaited initial public offering through an offer-for-sale by existing shareholders, while also reporting a sequential rise in quarterly profit.
The country’s largest bourse, embroiled in a litigation with the Securities and Exchange Board of India (Sebi) since 2019, which has been a major hurdle to its listing, received the markets regulator’s approval to proceed with the IPO in January. It did not disclose any details regarding the offer-for-sale.
The NSE also approved the formation of a committee to oversee activities related to the listing process. The committee will be chaired by non-independent director Tablesh Pandey, with the company’s CEO serving as a member.
Reuters reported last week that the NSE planned to form a committee to determine how investors can tender shares in the offer-for-sale.
The NSE is India’s largest unlisted company by number of investors, adding to the complexity of the listing process. Its largest institutional shareholders include Life Insurance Corporation of India, State Bank of India, Temasek Holdings and Morgan Stanley.
As it gears up for what could be one of the country’s biggest public listings, the exchange approved the appointment of Walker Chandiok & Co as its new auditors for five years, replacing Price Waterhouse & Co.
Profit rises on derivatives trading
The NSE‘s profit after tax rose 15% over the preceding three months to 24.08 billion rupees in the third quarter ended December 31, helped by improvements in derivatives trading.
Activity in India’s derivatives market had slumped after the markets regulator tightened futures and options trading rules in late 2024 to curb speculation.
NSE‘s average daily volumes in equity futures increased 8% quarter-on-quarter, while equity options volumes rose 15%.
Consolidated revenue from operations rose nearly 7% from the September quarter.
The exchange also approved setting up a unit for establishing a coal exchange.
Reuters
