NSE IPO: SBI, CPPIB, GIC Among Key Sellers In OFS; LIC Stays Out 

The National Stock Exchange (NSE) has filed draft papers with the Securities and Exchange Board of India (SEBI) for its long-awaited initial public offering (IPO), paving the way for what market participants estimate could be a ₹30,000 crore issue.

If priced as expected, the IPO could value the country's largest stock exchange at more than ₹5 lakh crore, making it the biggest public issue in Indian market history.

According to the draft red herring prospectus (DRHP), the NSE IPO will consist entirely of an offer for sale (OFS). Existing shareholders will collectively sell 14.89 crore shares, representing nearly 6% of NSE's equity. The exchange has around 1.8 lakh shareholders.

SBI Leads Selling Shareholders

State Bank of India (SBI) is the largest shareholder participating in the OFS. The lender plans to sell up to 2.48 crore NSE shares. The DRHP shows that SBI acquired these shares at a weighted average cost of just ₹0.80 per share.

Based on media reports indicating a possible IPO price of around ₹2,000 per share, SBI's sale could be worth nearly ₹4,950 crore. The shares being offered were acquired at an aggregate weighted average cost of about ₹1.98 crore. SBI currently owns a 3.23% stake in NSE. Its subsidiary SBI Capital Markets holds another 4.33% stake.

Foreign Investors And PSU Institutions To Divest Stakes

MS Strategic (Mauritius) Limited is the second-largest seller in the IPO. It will offload up to 1.60 crore shares acquired at a weighted average cost of ₹66.54 per share.

The Canada Pension Plan Investment Board (CPPIB) will sell up to 1.19 crore shares. Its average acquisition cost stands at ₹324.13 per share. Aranda Investments (Mauritius) Pte Ltd plans to divest up to 1.12 crore shares purchased at a weighted average cost of ₹62.38 apiece.

Among public sector banks, Bank of Baroda will sell up to 1.10 crore NSE shares. The lender acquired these shares at an average cost of ₹0.54 each. Stock Holding Corporation of India, which owns a 4.44% stake in NSE, will divest up to 1.09 crore shares. Its weighted average acquisition cost was ₹0.46 per share.

Insurance Companies Join The OFS

General Insurance Corporation of India (GIC) will sell up to 1.07 crore shares through the IPO. Also:

• The New India Assurance Company will divest up to 1.05 crore shares.

• National Insurance Company and United India Insurance Company will each sell 6 lakh shares.

Life Insurance Corporation of India (LIC), however, will not participate in the OFS despite being the single largest shareholder in NSE. LIC holds a 10.72% stake in the exchange, according to the DRHP.

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Large Team Appointed For IPO

NSE has appointed 20 merchant bankers to manage the public issue. The exchange has also engaged legal advisers and other intermediaries for the proposed listing process. The filing marks a key step in bringing one of India's most valuable market infrastructure institutions to the stock market after years of regulatory and legal hurdles.

Sources:

Livemint

The Economic Times