NSE IPO; Here’s How Much SBI, New India Assurance And Other Shareholders Could Make From The ₹1,700-1,785 Offer

The National Stock Exchange has fixed the price band for its Rs 22,562 crore initial public offering at Rs 1,700 to Rs 1,785 per share, setting the stage for one of the largest listings in Indian market history. The issue is entirely an offer for sale, with the proceeds going to existing shareholders selling their NSE holdings rather than to the exchange.

State Bank of India, the country's largest lender, is the biggest seller in the issue. SBI is offering up to 1.6 crore shares that it acquired at a weighted average cost of just 80 paise apiece. At the upper end of the price band, the stake sale could fetch the bank close to Rs 2,850 crore, implying a gross return of around 223,025% on its acquisition cost.

SBI currently holds a 3.23% stake in NSE, comprising around 7.98 crore shares. If it sells the maximum number of shares proposed in the IPO, the lender would retain close to 6.39 crore shares, which would be worth around Rs 11,400 crore at the upper end of the price band.

New India Assurance has an even lower acquisition cost. The insurer is offering up to 1.05 crore shares bought at a weighted average price of 32 paise each. At Rs 1,785 per share, the sale could generate around Rs 1,874 crore, representing a gross return of more than 557,000%.

SBI Capital Markets is offering 87.8 lakh shares acquired at 38 paise apiece. The stake sale could bring in around Rs 1,567 crore at the upper end of the price band, translating into a gross return of more than 469,000%.

Stock Holding Corporation of India is offering up to 61.9 lakh shares, with a weighted average acquisition cost of 46 paise per share. At Rs 1,785, the proposed sale would be worth around Rs 1,104 crore, implying a gross return of nearly 388,000%.

Bank of Baroda is offering 76.9 lakh shares acquired at a weighted average cost of 54 paise each. The sale could fetch the bank around Rs 1,373 crore at the upper end of the price band. General Insurance Corporation of India is offering 61.9 lakh shares at a weighted average cost of Rs 5.26 apiece, which could generate around Rs 1,104 crore and a gross return of about 33,835%.

United India Insurance Company could realise around Rs 1,071 crore from its proposed stake sale, representing a gross return of around 356,900% based on its stated acquisition cost.

The return profile is different for some of the institutional shareholders. Canada Pension Plan Investment Board is offering up to 1.2 crore shares, with a weighted average acquisition cost of Rs 324.13 apiece. At Rs 1,785, the stake sale could fetch around Rs 2,142 crore.

Ananda Investments (Mauritius) Pte is offering up to 1.1 crore shares acquired at a weighted average cost of Rs 62.38 apiece, while MS Strategic (Mauritius) Ltd is offering the same number of shares at an acquisition cost of Rs 66.54 each. At the upper end of the IPO price band, each could realise around Rs 1,965.5 crore.

The wide gap between the acquisition costs and the IPO price highlights the gains available to several existing NSE shareholders through the OFS. NSE's post-issue market capitalisation is expected to be around Rs 4.4 lakh crore at the upper end of the price band.

The calculations are gross estimates based on the maximum number of shares proposed to be sold and the upper NSE IPO price of Rs 1,785. Actual proceeds will depend on the number of shares ultimately sold, while taxes and offer-related expenses will affect the final gains.

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