Like moths to a flame: IPO-less NSE still draws investors

Despite a failed IPO in 2016 and a two-year investigation with no end in sight, India’s largest exchange still remains an attractive prospect for investors

The National Stock Exchange's ambitions of an IPO have repeatedly amounted to nought

An investigation into allegations that its co-location facility was misused has dragged on since 2016

As a result, NSE has been unable to get Sebi approval for its listing

Waiting in hope are investors looking for a huge payday when NSE finally lists. But will this ever happen?

The largest exchange in India, National Stock Exchange (NSE) has an ambition—to launch its initial public offering (IPO) during this fiscal year. And there are many who are hoping to make money out of it. Old investors such as Norwest Venture Partners—who now own only a 1.58% stake—originally acquired a 2.11% stake in the company at a valuation of Rs 2,650 ($36) per share in 2009. And Johnny-come-latelys like NewQuest Capital Partners who entered the company in 2015 as old investors were losing patience.Among this latter group, one man stands out—Prashasta Seth, CEO at IIFL Asset Management. Seth has raised the largest pre-IPO fund in India.

AUTHOR

Pooja Sarkar

Pooja has been a journalist for about a decade now. She has worked at DNA Money, Business Standard and Mint. In her last assignment, Pooja was a chief correspondent at ET Now. At The Ken, she will write on private equity and the venture capital ecosystem. This, in the context of company strategy. Along with work, she is picking up important life skills these days, like the art of knitting a muffler.

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