The National Stock Exchange of India (NSE) has filed its Red Herring Prospectus (RHP) for its anticipated initial public offering (IPO), revealing significant adjustments to the offer-for-sale (OFS) component. This updated filing shows a reduction in the number of shares proposed for sale by several key existing shareholders, alongside the addition of SBI Capital Markets Limited as a new selling entity.
These changes reflect a strategic decision by some shareholders to retain a larger portion of their holdings, potentially to benefit from future value appreciation post-listing. The overall number of shares offered through the IPO has consequently decreased compared to the initial Draft Red Herring Prospectus (DRHP) filed on June 17, 2026.
Revised Offer-for-Sale Details
The RHP indicates a lower overall offer value for the OFS, based on the revised share quantities and an indicative price band of Rs 1,700-1,785 per share. The final offer size will be determined through the IPO process.
Major Shareholders Trim Stakes
Several prominent shareholders have scaled back their proposed share sales:
- State Bank of India: Reduced from 24.75 million shares in DRHP to 15.97 million shares in RHP.
- MS Strategic (Mauritius) (Morgan Stanley affiliate): Cut from 16 million shares to 11 million shares.
- Bank of Baroda: Decreased from 10.99 million shares to 7.69 million shares.
- Stock Holding Corporation of India: Revised from 10.89 million shares to 6.19 million shares.
- General Insurance Corporation of India: Lowered from 10.66 million shares to 6.19 million shares.
- National Insurance Company: Reduced from 6 million shares to 4 million shares.
- Mahagony Ltd: Trimmed from 5 million shares to 3 million shares.
- Indian Bank: Decreased from 2.48 million shares to 1.50 million shares.
New Entrant: SBI Capital Markets
SBI Capital Markets Limited has been added as a selling shareholder in the RHP, proposing to sell 8.78 million NSE shares through the OFS. Conversely, Amit Kumar Lohia, who intended to sell a small quantity of shares in the DRHP, is no longer listed among the selling shareholders in the revised filing.
Why the Revision?
Sources familiar with the matter indicate that the reduction in the OFS primarily stems from decisions by some existing shareholders to retain a larger portion of their NSE holdings. This strategy aims to allow them to participate in any potential value appreciation of the shares after the exchange's listing, rather than divesting their entire proposed quantity during the IPO.
Implication for Public Shareholding
Existing shareholders are expected to offer approximately 5.5 percent of NSE's equity through this IPO. The revised stake sale also has implications for the exchange's public shareholding structure post-listing. The NSE is anticipated to evaluate further stake sales over time to meet applicable minimum public shareholding requirements.
Unchanged Selling Shareholders
The proposed OFS quantities for several other selling shareholders remain consistent between the DRHP and RHP. These include entities such as the Canada Pension Plan Investment Board, Aranda Investments, The New India Assurance Company, United India Insurance Company, Crown Capital, Ontario Inc., The Oriental Insurance Company, ICICI Lombard, TA Asia Pacific Acquisitions, Soach Global Strategic Holdings, Be-In Eight, Rajiv Bolla, Shaik Samdani Basha, and Mahesh Gupta.
The current filing primarily reflects changes in the composition and size of the OFS. Any fresh issue component, if applicable, remains separate, with the final structure and size of the IPO to be determined as the offer process progresses.