New India Assurance to Sell 1.05 Crore NSE Shares Through Proposed IPO

The New India Assurance Company (NIACL) plans to sell 1.05 crore shares of the National Stock Exchange of India (NSE) through the exchange’s proposed initial public offering, joining a group of existing shareholders looking to pare their holdings as part of the much-awaited listing. 

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The state-owned insurer disclosed the proposed sale in an exchange filing on Wednesday, September 9. The 1.05 crore shares being offered represent 29.83% of New India Assurance’s current holding in NSE. 

The transaction will take place through the offer-for-sale (OFS) component of the IPO and remains subject to the necessary regulatory approvals. 

Bank of Baroda Also Plans to Pare NSE Stake 

New India Assurance is not the only public-sector financial institution preparing to sell part of its NSE holding. 

A day earlier, Bank of Baroda announced plans to divest up to 76.90 lakh NSE shares through the proposed IPO. The shares being offered by the bank represent 35% of its holding in the exchange. 

NSE’s draft prospectus lists several other existing shareholders as sellers. These include State Bank of India, MS Strategic (Mauritius), Canada Pension Plan Investment Board, Aranda Investments (Mauritius), Stock Holding Corporation of India, General Insurance Corporation of India, National Insurance Company and United India Insurance Company. 

The IPO itself is structured as an OFS, meaning the proceeds from shares sold through the issue will go to the selling shareholders. 

NSE IPO May Be Priced at ₹1,700-1,785 Per Share 

The NSE IPO is likely to be priced in the range of ₹1,700 to ₹1,785 per share, according to a Reuters report cited by Livemint. 

At ₹1,785, the upper end of the expected range, NSE would be valued at around ₹4.4 lakh crore, or $46.41 billion. 

The size of the share sale, however, could be smaller than initially planned. 

The OFS is likely to represent around 5.2-5.5% of NSE’s equity, compared with the earlier proposal of 6%, as some existing shareholders have reportedly decided against participating in the sale. 

If the offer is reduced to that level, the IPO could raise around ₹25,000 crore to ₹27,000 crore. The earlier estimate had put the issue size at close to ₹30,000 crore. 

At ₹30,000 crore, NSE’s offering would have surpassed Hyundai Motor India’s ₹27,870 crore IPO in 2024 to become the largest public issue in India. 

NSE Listing Expected Later in September 

The public issue is likely to open for subscription on September 18, with the listing expected on September 25, according to a PTI report cited by Livemint. 

For New India Assurance, the immediate development is the proposed sale of 1.05 crore NSE shares. That amounts to nearly 30% of its existing holding in the exchange, with the divestment dependent on the NSE IPO moving ahead and receiving the required regulatory clearances.