NSE IPO Approval Held Up Over SBI-SBICAPS Share Allocation
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SEBI’s observations on the proposed NSE IPO are awaiting the completion of a share allocation process between SBI and SBI Capital Markets. Under the revised plan, SBI will sell up to 15.97 million NSE shares, while SBICAPS will offer up to 8.78 million shares.
The proposed initial public offering (IPO) of the National Stock Exchange (NSE) is awaiting a change in the shareholding structure between State Bank of India (SBI) and SBI Capital Markets Ltd (SBICAPS), according to a person familiar with the matter.
The Securities and Exchange Board of India (SEBI) is yet to issue its observations on the IPO. The delay is linked to the transfer of NSE shares and the resulting changes in the shareholding structure between the two SBI group companies.
SBICAPS has now been added as a selling shareholder alongside SBI. The two entities will split the shares that SBI had earlier planned to sell through the NSE IPO.
SBI, SBICAPS To Split NSE Shares
Under the revised arrangement, SBI will offer up to 15.97 million NSE shares, while SBICAPS will sell up to 8.78 million shares.
The overall size of the offer has not changed. The IPO will continue to be an offer for sale (OFS), with existing shareholders selling their holdings. NSE itself will not issue any new shares.
The transfer between SBI and SBICAPS is expected to take some time. Once completed, the revised shareholding details will need to be reflected in NSE's draft red herring prospectus (DRHP).
NSE has already issued an addendum to its DRHP to reflect the new allocation.
SEBI Observations Await Revised Structure
According to the source, the change in the selling shareholder structure needs to be completed before SEBI can take the IPO application forward.
The revised details also need to be incorporated into the DRHP as part of the regulatory process.
The development does not affect the total number of shares being offered in the IPO. It only changes how the shares previously earmarked for sale by SBI will be divided between SBI and SBICAPS.
The NSE IPO has been closely watched by the market as one of India's most anticipated public offerings.
SBICAPS Has Dual Role In NSE IPO
SBICAPS' inclusion as a selling shareholder is notable because the company is also one of the lead merchant bankers advising on the NSE IPO.
The SBI group company will therefore have two roles in the proposed issue. It will sell NSE shares under the revised arrangement and also be part of the banking group managing the IPO.
For now, the key step is the completion of the share allocation process between SBI and SBICAPS. Once the revised structure and related documentation are in place, SEBI can issue its observations on the proposed NSE IPO.
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Vishwa has spent 10+ years across fintech and FMCG doing what most people miss, connecting the dots, catching trends before they trend, and finding the angle nobody else thought to ask about.
At Kotak Neo, she drives content strategy for neoshorts, Kotak News Desk, and Investing Guide, turning market noise into something worth reading.
When she's not decoding markets, she trades charts for canvases, chasing art, painting, and architecture across cities she's yet to explore.
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