Goldman Sachs Asset Management, Franklin Templeton, and Fidelity International Ltd. are among the global first set to participate as anchor investors in National Stock Exchange of India Ltd.’s initial public offering, according to people familiar with the matter, as the bourse prepares to raise as much as 226 billion rupees ($2.4 billion).
Norges Bank Investment Management, Abu Dhabi Investment Authority, GIC, Eastspring Investments Services Pte Ltd., Millennium Management, Marshall Wace, Citadel Capital and Ghisallo Capital Management are also among those likely to subscribe to the anchor book, the people said, asking not to be identified because the information is private.
The anchor book is likely to be about 68 billion rupees, the people said. Some prominent money managers including Capital Group, BlackRock Inc., Aberdeen Group PLC, FMR LLC and T. Rowe Price Group Inc. are likely to skip the offering amid concerns over valuation, they said.
The anchor allotment process is still ongoing, and the final investor lineup may change, the people said. Fidelity International, Eastspring, GIC, ADIA, Norges Bank, Aberdeen, and Citadel declined to comment, while representatives for NSE and the other funds didn’t respond to requests for comment.
The mixed response underscores the debate over NSE’s valuation even after the exchange lowered the price range for its long-awaited initial public offering. While its dominant market position and profitability have attracted strong investor interest, some funds remain wary of the price they are being asked to pay for future growth.
Investors are weighing slowing growth and tighter regulatory oversight of stock-market activity. Options trading, a key driver of the exchange’s earnings, has come under particular pressure as Indian authorities seek to curb speculative derivatives trading.
NSE, the world’s largest derivatives exchange by volume, will take orders from investors from Sept. 17 through Sept. 21, with a potential listing on Sept. 24. The anchor book is scheduled to open on Sept. 16.
The exchange set a price band of 1,700 rupees to 1,785 rupees a share, below an earlier marketed range of 2,000 rupees to 2,100 rupees, people familiar with the matter have said. The lower range reflects an effort to strike a balance between NSE’s growth prospects and investor concerns over valuation and regulatory risks.
