Existing investors in the National Stock Exchange are largely holding on to their stakes, with only a small portion of their shares being offered through the Rs 22,569-crore offer-for-sale (OFS) that forms the basis of the exchange’s IPO, an analysis of shareholding data shows.
Institutional investors held a combined 36.82 per cent stake in NSE before the IPO, but are offering shares equivalent to only about 5.11 per cent of the exchange’s total equity.
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Of the 20 institutional shareholders participating in the offer-for-sale (OFS), nine are foreign institutional investors. Together, they held a 15.96 per cent stake in NSE before the share sale.
The remaining 11 shareholders comprise 10 public sector entities and ICICI Lombard General Insurance. These domestic institutions collectively held a 20.86 per cent stake in NSE before the OFS.
Several of NSE’s largest shareholders have chosen to sell only a small portion of their holdings through the IPO.
Aranda Investments, which held a 4.54 per cent stake before the OFS, is selling only a part of its holding. Similarly, Stock Holding Corporation of India, which held 4.44 per cent, SBI Capital Markets with 4.33 per cent and ChrysCapital with 3.73 per cent have each reduced their holdings by an average of around 7 per cent.
Among other major foreign investors, Crown Capital is offering around 11 per cent of its pre-OFS holding, while TA Asia Pacific is reducing its stake by about 6 per cent.
Overall, the shareholding pattern shows that existing investors are using the IPO to sell part of their NSE holdings while continuing to retain a sizeable stake in the exchange.
The IPO was fully subscribed on the second day of bidding on Friday. With an issue size of Rs 22,569 crore, it is currently India’s second-largest public issue, behind Hyundai Motor India’s Rs 27,870-crore IPO in 2024. It has also surpassed the Rs 21,000-crore IPO of Life Insurance Corporation of India in 2022.
The NSE IPO is entirely an OFS, meaning the exchange itself is not issuing any new shares. Existing shareholders are offering up to 12.64 crore equity shares for sale.
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NSE has fixed the price band at Rs 1,700-1,785 per share, valuing the exchange at up to Rs 4.42 lakh crore at the upper end of the band. Since there is no fresh issue, NSE will not receive any money raised through the IPO. The proceeds will instead go to the existing shareholders who are selling their shares.
The OFS was initially planned at 14.9 crore shares but was later reduced to 12.64 crore shares. This brought the issue size down from an earlier estimate of around Rs 30,000 crore.
The IPO will close on September 21, with NSE shares expected to list on September 24.
(With PTI Inputs)
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