NSE IPO: The National Stock Exchange (NSE) has filed its preliminary papers with markets regulator Sebi for its much-awaited initial public offering (IPO). Markets estimate NSE IPO size could be around ₹30,000 crore, making it the largest public issue in the Indian stock market history. This would give a valuation of over ₹5 lakh crore to the NSE, which has around 1.8 lakh shareholders.
NSE IPO will be entirely an offer for sale (OFS) of 14.89 crore shares with existing shareholders collectively divesting nearly 6% of the exchange’s stake, according to the draft red herring prospectus (DRHP).
Several state-owned banks, insurance companies and institutional investors are among the top selling shareholders in the NSE IPO.
Here are the key beneficiaries from the OFS of NSE IPO.
Sellers in NSE IPO
State Bank of India (SBI) is the largest shareholder participating in the OFS of NSE IPO. SBI will sell up to 2.48 crore NSE shares. According to the DRHP, SBI’s weighted average acquisition cost for these shares is merely ₹0.80 per share.
Based on media reports suggesting an assumed NSE IPO price band of ₹2,000 per share, the value of SBI’s stake sale could amount to nearly ₹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 exchange.
MS Strategic (Mauritius) Limited is the second largest selling shareholder, offloading 1.60 crore NSE shares. The weighted average cost of these shares is ₹66.54 apiece.
Canada Pension Plan Investment Board will swell up to 1.19 crore NSE shares acquired at an average cost of ₹324.13 per share, while Aranda Investments (Mauritius) Pte Ltd will offload up to 1.12 crore NSE shares, which it acquired at an weighted average cost of ₹62.38 apiece.
Among other PSU Banks, Bank of Baroda will sell up to 1.10 crore NSE shares acquired at an average cost of ₹0.54 per share.
Stock Holding Corporation of India, which owns 4.44% stake in NSE, will divest 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. National Insurance Company and United India Insurance Company will divest 6 lakh shares each of NSE.
Meanwhile, Life Insurance Corporation of India (LIC), the single largest shareholder in NSE, holding a 10.72% stake, will not sell any shares in the OFS.
NSE has appointed 20 merchant bankers, besides legal advisors and other intermediaries, to manage the proposed public issue.
