At this size, NSE may fall short of becoming India's largest-ever public offering
The size of the National Stock Exchange (NSE) IPO may shrink with the offer for sale (OFS) likely to be cut to 5.2-5.5 per cent, from the 6 per cent planned earlier, as some shareholders have backed out of the sale, people familiar with the matter said on Wednesday.
The reduced OFS could bring down the overall issue size to ₹25,000-27,000 crore, compared with the earlier estimate of ₹30,000 crore. At this size, NSE may fall short of becoming India's largest-ever public offering. Hyundai Motor India's IPO, at ₹27,870 crore, currently holds the record.
The reduction in the OFS size is understood to be driven by some shareholders choosing not to sell during the IPO, as they believe they could command a better valuation by selling their stake at a later stage, thepeople familiar with the matter said.
The NSE is also looking to make the issue more attractive for retail investors, with pricing being structured to provide greater participation and benefit to small investors in the OFS, they added.