NSE Shaves 15% off OFS Offered in Proposed IPO as Eight Shareholders Cut Down Sizing Down of Stake

National Stock Exchange of India (NSE) has scaled down the size of the planned IPO after some of its shareholders announced that they would be selling fewer shares in the offer. 

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In the red herring prospectus dated September 10, NSE’s offer for sale (OFS) has been pared down to 15%. NSE will now offer up to 12.64 crore shares in the issue compared to 14.89 crore previously proposed. 

The scaling down of 2.25 crore shares has been done completely by eight selling shareholders. 

The IPO itself remains an offer for sale wherein NSE will not issue any new shares in the process. 

Eight Shareholders Account for Entire Reduction 

MS Strategic (Mauritius) has made the largest individual cut, reducing its proposed sale by 50 lakh shares. 

Stock Holding Corporation of India has lowered its offer by 47 lakh shares, while General Insurance Corporation of India has cut its proposed sale by 45 lakh shares. 

Bank of Baroda has reduced its offer by 33 lakh shares and National Insurance Company by 20 lakh shares. 

Mahagony Limited has also cut its proposed sale by 20 lakh shares, while Indian Bank has reduced its portion by 10 lakh shares. 

Individual shareholder Amit Kumar Lohia has withdrawn from the OFS entirely. He had earlier proposed selling 25,000 shares. 

Together, these eight shareholders account for the full reduction of approximately 2.25 crore shares. 

CPPIB, Aranda Investments and TA Asia Pacific Keep Offers Unchanged 

Not every shareholder participating in the NSE IPO has altered its plans. 

Canada Pension Plan Investment Board, Aranda Investments (Mauritius) and TA Asia Pacific Acquisitions have retained the number of shares they intend to sell. 

The SBI Group’s overall proposed stake sale also remains unchanged at 2.48 crore shares, although the allocation within the group has been restructured. 

The updated prospectus shows State Bank of India offering 1.60 crore shares, while SBI Capital Markets will sell 88 lakh shares. 

In the earlier updated draft prospectus, the entire 2.48 crore shares had been shown under State Bank of India. The 88-lakh-share reduction in SBI’s individual offering has therefore shifted to SBI Capital Markets rather than reducing the group’s overall contribution to the OFS. 

NSE IPO Remains Entirely an Offer for Sale 

Despite the changes in individual selling shareholders, the structure of the IPO has not changed. 

The issue remains entirely an OFS, with no fresh shares being issued by NSE. As a result, proceeds from the offering will go to the shareholders selling their stakes rather than to the exchange itself. 

The latest RHP therefore represents a reduction in the number of existing shares being brought to the public market, rather than a change in NSE’s capital structure through the issuance of new equity. 

IPO Expected to Open September 17 

According to sources cited in the report, the NSE IPO is expected to open for subscription on September 17. 

The exchange is expected to list on September 24. 

These dates were reported by Moneycontrol based on sources and should not be treated as formally announced timelines within the context of this report. 

With the RHP now showing an OFS of up to 12.64 crore shares instead of 14.89 crore, the latest filing brings NSE’s long-awaited public offering closer to launch while also confirming a more than 15% reduction in the number of shares being offered.