The New Indian Express ·
NSE IPO may shrink to Rs 25,000-27,000 crore as investors pull back from OFS
NEW DELHI: 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 Rs 25,000-27,000 crore, compared with the earlier estimate of Rs 30,000 crore. At this size, NSE may fall short of becoming India's largest-ever public offering. Hyundai Motor India's IPO, at Rs 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, the people familiar with the matter said.