Bank Of Baroda To Offload Up To 35% Of Its NSE Holding Through Proposed IPO

Bank of Baroda is set to sell a part of its investment in the National Stock Exchange (NSE) through the exchange's proposed initial public offering (IPO). The state-owned lender said it plans to divest up to 76.90 lakh equity shares, representing 35% of its holding in NSE, subject to the required regulatory approvals.

The proposed sale will be carried out through the offer for sale (OFS) component of NSE's IPO. As the issue will be entirely an OFS, the money raised from the sale of shares will go to the existing shareholders participating in the offering.

Bank Of Baroda Transfers Shares To Escrow Account

In a regulatory filing, Bank of Baroda said the NSE shares it proposes to sell were transferred to an escrow account on 8 September 2026 as part of the IPO process.

The lender expects to complete the transaction by the end of September, in line with the timeline indicated by the NSE. The bank will receive consideration for the shares after the OFS process is completed.

Bank of Baroda is among the existing shareholders looking to monetise a portion of its investment in the country's largest stock exchange. The bank also received ₹76.90 crore as dividend from NSE for the financial year 2025-26.

The lender clarified that the proposed transaction is neither a related-party transaction nor part of any Scheme of Arrangement.

NSE IPO Could Become India's Largest Ever Public Issue

NSE's proposed IPO is expected to be worth around ₹30,000 crore and could become the largest public issue in India's history, surpassing Hyundai Motor India's ₹27,870-crore IPO in 2024.

The issue is likely to open for public subscription on 18 September, with the listing tentatively scheduled for 25 September. The price band is expected to be announced on 15 September, while the anchor investor portion could open on 17 September.

The public issue is expected to remain open on 18 September, 21 September and 22 September.

NSE's IPO will consist entirely of an offer for sale of up to 14.89 crore equity shares with a face value of ₹1 each. The shares offered represent nearly 6% of the exchange's paid-up equity capital.

Since no fresh issue is involved, NSE will not receive any money from the proposed public offering. Instead, the proceeds will be distributed among the shareholders selling their stakes through the IPO.

Bank of Baroda shares closed at ₹236.60 on the NSE, down ₹0.40, or 0.17%, at the end of Tuesday's session.

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