NSE IPO: SBI, Bank Of Baroda Among Top Sellers; Check Who Else Is Divesting

NSE IPO I OFS: The National Stock Exchange (NSE) has filed it with markets regulator Sebi for its much-awaited initial public offering (IPO). Markets estimate , making it the largest public issue in the Indian stock market history.

The NSE IPO has filed its draft red hearing prospectus (DRHP) inching closer to the biggest public listing in Indian markets after Hyundai India's Rs 27,000 crore market debut.

The estimates hovering in and around Dalal Street expects the NSE IPO size to be nearly rs 30,000 crore

This would give a valuation of over Rs 5 lakh crore to the NSE, which has around 1.8 lakh shareholders.

The NSE IPO will be entirely an offer for sale (OFS) consisting of 14.89 crore shares with existing shareholders collectively divesting roughly 6% of the exchange’s stake, according to the s preliminary papers.

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Several state-owned banks, insurance companies and institutional investors are among the top selling shareholders in the NSE IPO.

Top Beneficiaries From NSE IPO's OFS

The State Bank of India is the largest shareholder participating in the OFS of NSE IPO. SBI will offload 2.48 crore NSE shares. As per the DRHP, SBI’s weighted average acquisition cost for these shares is merely ₹0.80 per share.

Reportedly, NSE IPO price band is expected to be valued at ₹2,000 per share, the value of SBI’s stake sale could amount to nearly Rs 4,950 crore. Notably, the shares being sold were acquired at an aggregate weighted average cost of only around ₹1.98 crore, underscoring the substantial value appreciation in SBI’s investment. SBI holds a 3.23% stake in the NSE, and its subsidiary, SBI Capital Markets, holds a 4.33% stake in the stock market exchange.

MS Strategic (Mauritius) Limited is the second biggest selling shareholder, divesting 1.60 crore NSE shares. The weighted average cost of these shares stands at Rs 66.54 apiece.

Canada Pension Plan Investment Board will divest 1.19 crore NSE shares acquired at an average cost of ₹324.13 per share, while Aranda Investments (Mauritius) Pte Ltd will offload nearly 1.12 crore NSE shares.

The other public lender looking to divest is Bank of Baroda, which will sell up to 1.10 crore NSE shares acquired at an average cost of Rs 0.54 per share.
National Insurance Company and United India Insurance Company will divest 6 lakh shares each of NSE.

Stock Holding Corporation of India, which owns 4.44% stake in NSE, will also offload up to 1.09 crore shares purchased at ₹0.46 apiece.

General Insurance Corporation of India will offload 1.07 crore NSE shares and The New India Assurance Company will sell 1.05 crore NSE shares in the OFS.