NSE gets board nod to launch IPO via OFS, clears bonus shares

NSE's board has decided that the public issue will be in the form of an offer for sale by shareholders

PTI October 06, 2016 15:24:27 IST
NSE gets board nod to launch IPO via OFS, clears bonus shares

New Delhi: Ahead of its much-awaited IPO, top stock exchange NSE's board has decided that the public issue will be in the form of an offer for sale by shareholders while the directors have approved issuance of bonus shares, stock split and a dividend payout for the existing investors.

NSE plans to get listed in India as well as abroad. It will file draft IPO papers with market regulator Sebi for the domestic public issue by January 2017 while it will file for overseas listing by April next year.

The exchange has been facing intense pressure from its shareholders to go public and had formed a listing committee to expedite the process and seek support for self-listing.

NSE gets board nod to launch IPO via OFS clears bonus shares

NSE Building. PTI

At its board meeting on October 4, NSE has decided that its IPO will be in the form of an offer for sale (OFS) of shares by the existing shareholders.

Besides, the board declared an interim dividend of Rs 79.50 per share of Rs 10 each of the company for 2016-17. The record date to determine the eligibility for payment of the interim dividend is fixed as October 17. The dividend will be paid by October 31.

Further, NSE's board has decided to issue one bonus share of Rs 10 each for every 10 shares of Rs 10 each held by the shareholders.

The number of shares after the bonus issue will rise to to 4.95 crore shares from the existing 4.50 crore.

"Share premium required for implementing the bonus issue is Rs 4.50 crore. Share premium account as on March 31, 2016 was Rs 40 crore," NSE said, adding that bonus shares will be credited by November 30.

The board has also decided "sub-division of shares of Rs 10 into shares having a face value of Re 1 each subject to the approval of the shareholders in the general meeting and regulatory approvals, if any. The record date for the same will be announced later".

The decision was taken "keeping in mind future corporate actions the exchange may undertake in compliance with applicable regulations in future".

Its authorised share capital of Rs 50 crore will remain unchanged, post stock split.

The National Stock Exchange (NSE) said the splitting of shares is expected to be complete by December 15, subject to regulatory and shareholder nod.

The exchange has already roped in four merchant bankers -- Citigroup and Morgan Stanley, JM Financial Institutional Securities and Kotak Mahindra Capital Company -- to manage its upcoming initial public offer (IPO). Besides, the exchange has engaged Cyril Amarchand Mangaldas as the legal advisor.

NSE has reportedly approached the government and Sebi to bring in norms for self-listing. Regulations of the Securities and Exchange Board of India (Sebi) do not provide for self-listing of a stock exchange and the watchdog has so far said no to considering the matter.

The exchange's closest competitor, BSE, has already filed draft prospectus with Sebi to float an IPO.

Updated Date:

Find latest and upcoming tech gadgets online on Tech2 Gadgets. Get technology news, gadgets reviews & ratings. Popular gadgets including laptop, tablet and mobile specifications, features, prices, comparison.

also read

Odisha 10th result 2020 DECLARED: Alternative websites to check BSE Class 10 results if bseodisha.nic.in is down
India

Odisha 10th result 2020 DECLARED: Alternative websites to check BSE Class 10 results if bseodisha.nic.in is down

Odisha 10th result 2020 DECLARED | Students can access the Odisha Board of Secondary Education Class 10 results on examresults,net and indiaresults.com if official website is slow

Odisha Matric Result 2020 DECLARED: BSE announces Class 10 results; steps to check score via SMS
India

Odisha Matric Result 2020 DECLARED: BSE announces Class 10 results; steps to check score via SMS

Odisha Matric Result 2020 DECLARED | BSE declared the results today at 10 am on the official website bse.odisha.nic.in

Odisha 10th result 2020 DECLARED: BSE declares Class 10 exam results, check details at bseodisha.nic.in
India

Odisha 10th result 2020 DECLARED: BSE declares Class 10 exam results, check details at bseodisha.nic.in

Odisha 10th Result 2020 DECLARED: Students can check it through the board's official websites: bseodisha.nic.in and orissaresults.nic.in.