NSE IPO size likely to shrink to ₹25,000-27,000 crore amid investor pullback

The National Stock Exchange's much-anticipated IPO may fall short of its original size, with the offer for sale (OFS) component expected to be reduced to 5.2-5.5 per cent from the initially planned 6 per cent, according to sources aware of the developments. The scaling down reflects decisions by certain shareholders to defer their stake sales, with several choosing to exit at what they believe could be more favourable valuations in future transactions.

At the revised size of ₹25,000-27,000 crore, the NSE IPO would narrowly miss the distinction of becoming India's largest-ever public offering, a title currently held by Hyundai Motor India's ₹27,870-crore listing. The reduction marks a shift from earlier expectations that the exchange's public debut would set a new benchmark for Indian capital markets.

Despite the contraction in overall issue size, the NSE is prioritizing retail investor participation in its IPO. The exchange is structuring the pricing mechanism to offer enhanced access and benefits to small investors, particularly within the OFS component, aiming to broaden the ownership base among retail shareholders.

The pullback by certain shareholders underscores investor confidence in the NSE's long-term value prospects, with stakeholders preferring to hold their stakes longer rather than capitalize on current valuations. The development also reflects ongoing market dynamics as Indian companies navigate investor sentiment during the IPO process.