SBI, PSU Insurers Among Biggest Beneficiaries Of NSE IPO Exit

State-owned banks, insurance companies and global institutional investors are set to be among the largest gainers from the National Stock Exchange’s proposed initial public offering, with many shareholders selling stakes acquired at a fraction of the prevailing unlisted market value.

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The IPO will consist entirely of an offer for sale (OFS), with 23 shareholders together planning to offload up to 14.89 crore shares. Since no fresh equity is being issued, the proceeds from the sale will go entirely to the existing shareholders.

State Bank of India (SBI) is the largest seller in the issue, proposing to sell up to 2.47 crore shares. The lender’s weighted average acquisition cost stands at ₹0.80 per share.

Among other public-sector institutions, Bank of Baroda plans to divest 1.09 crore shares acquired at an average cost of ₹0.54 apiece, while Stock Holding Corporation of India will sell up to 1.08 crore shares purchased at ₹0.46 per share.

PSU Insurers To Monetise Long-Held Stakes

Several state-owned insurance companies are also reducing their holdings. General Insurance Corporation of India (GIC Re) plans to sell up to 1.06 crore shares acquired at an average price of ₹5.26 per share.

The New India Assurance Company, National Insurance Company, United India Insurance Company and The Oriental Insurance Company had acquired their stakes at less than ₹1 per share and will partially exit through the public issue.

Foreign investors are also among the major sellers. MS Strategic (Mauritius), backed by Morgan Stanley, intends to offload 1.6 crore shares acquired at an average cost of ₹66.54 per share. Aranda Investments (Mauritius), linked to Singapore’s sovereign wealth fund, will sell 1.12 crore shares purchased at ₹62.38 each.

The Canada Pension Plan Investment Board (CPPIB), one of NSE’s largest overseas shareholders, plans to divest 1.18 crore shares. Its weighted average acquisition cost stands at ₹324.13 per share.

Higher-Cost Investors Also Participate

Several private equity and financial investors are part of the OFS. Crown Capital Limited and 2726247 Ontario Inc. together will sell more than 1.1 crore shares. TA Asia Pacific Acquisitions, ICICI Lombard General Insurance and Soach Global Strategic Holdings are also trimming their holdings.

Mahagony Limited reported an average acquisition cost of ₹564.84 per share, while Italian investor Be-In Eight S.r.l. had one of the highest purchase prices among the sellers at ₹1,030 per share.

A few individual shareholders, including Amit Kumar Lohia, Rajiv Bolla, Shaik Samdani Basha and Mahesh Gupta, are participating in the issue, though their combined contribution amounts to only 34,000 shares.

Based on the unlisted market price of ₹2,055 per share, according to UnlistedZone, the value of nearly 14.89 crore shares proposed for sale works out to around ₹30,600 crore. The final issue size, however, will depend on the price band announced for the IPO.