NSE IPO shrinks as Morgan Stanley, other investors cut stake sales

National Stock Exchange of India has scaled back the size of its long-awaited IPO as key institutional shareholders trimmed their planned stake sales. Morgan Stanley's investment vehicle MS Strategic cut its offering by 5 million shares from the originally planned 16 million, while Bank of Baroda reduced to 7.69 million shares from 10.99 million, and Indian Bank trimmed to 1.50 million from 2.48 million. GIC Re, Stock Holding Corporation and National Insurance also pared their planned sales, with the reductions reflecting existing shareholders confidence in the exchange's growth trajectory ahead of its public debut. NSE received Sebi approval for the IPO earlier this month and is set to file its red herring prospectus shortly, marking a milestone in its decade-long listing saga.