India's top bourse is said to have doubled in value amid IPO hopes

National Stock Exchange of India Ltd.’s valuation in the private markets has doubled to $36 billion in the last four months, backed by investor expectation that an initial public offering could materialize as early as the first quarter of next year, according to people familiar with the matter.
 

Unlisted shares in the world’s largest derivative exchange by contracts are in high demand with wealth managers whose rich clients want to own a piece of the company, said the people, asking not to be identified citing private information. While the demand for them far outstrips the supply, the shares have sold in the range of 5,700 rupees to 6,500 rupees ($68 to $78) recently, the people said.

The firm’s valuation could increase further over the coming months as the listing plans move ahead, the people said. Shares in closely-held firms can change hands in the secondary market, either on specialist private trading platforms or in individually negotiated transactions. Due to the nature of the secondary market it’s unclear how many shares changed hands.

While one of the people said NSE is working toward completing documentation for an IPO by early next year, the potential listing could still take longer.

A representative for NSE didn’t immediately respond to emails seeking comment.

Earlier this month, the markets regulator Securities and Exchange Board of India cleared NSE, as the bourse is called, of any wrongdoing in a case of unfair market access dating back nearly a decade and which represented a key hurdle for the firm to list publicly.

The exchange, backed by large investors like Life Insurance Corporation of India and Canada Pension Plan Investment Board, first filed papers for an IPO in 2016. The plans to take it public suffered a setback when the regulator barred it from the securities market for a period of six months and ordered it to pay a fine after ruling that brokerage OPG Securities Pvt. benefited from unfair market access.

The privately-held NSE was valued at between $17 billion to $18 billion when private equity firm ChrysCapital Management Co., that holds a 4 per cent stake in it, executed a $700 million continuation fund to hold the company for longer in May this year.
 

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