The National Stock Exchange (NSE), India's largest stock exchange by trading volumes, has officially announced the price band for its much-anticipated initial public offering (IPO). The price for the equity shares has been fixed between Rs 1,700 and Rs 1,785 per share.
This disclosure, made on Thursday, has triggered immediate reactions in the market, particularly among the listed entities that are participating as selling shareholders in the public issue. Shares of State Bank of India (SBI), Bank of Baroda, GIC Re, Indian Bank, and New India Assurance were observed trading up to 3% lower on Friday.
NSE IPO Subscription Details and Structure
The bidding window for the NSE IPO is scheduled to open on Thursday, September 17, and will conclude on Monday, September 21. Investors will have the opportunity to bid for a minimum of 8 shares, with subsequent bids allowed in multiples of 8.
The entire public issue is structured as an Offer-for-Sale (OFS), meaning existing shareholders will be selling a total of 12,64,36,550 equity shares, which constitutes approximately a 5.11% stake in the exchange. At the upper end of the price band, this IPO is projected to raise around Rs 22,568.92 crore. Importantly, the NSE itself will not receive any proceeds from this IPO; all funds generated will go directly to the existing shareholders divesting their stakes.
Key shareholders participating in the OFS include State Bank of India, Canada Pension Plan Investment Board, Aranda Investments (Mauritius), MS Strategic (Mauritius), The New India Assurance Company, SBI Capital Markets, Bank of Baroda, Stock Holding Corporation of India, General Insurance Corporation of India, and United India Insurance Company.
Market Impact on Selling Shareholders
Following the NSE IPO price band announcement, several prominent selling shareholders saw their stock prices dip:
- State Bank of India (SBI): Shares were trading on a flat note, down 0.50% at Rs 999.45 on the BSE in early deals. Its market capitalization stood at Rs 9.21 lakh crore.
- Indian Bank: Shares slipped by 2.90% to Rs 835.05, compared to its previous close of Rs 860. The bank's market cap fell to Rs 1.13 lakh crore.
- GIC Re: Shares also traded on a flat note at Rs 342.95 on the BSE, with its market cap at Rs 60,167 crore.
- New India Assurance: Shares were trading 1% lower at Rs 194.10, bringing its market capitalization to Rs 32,234 crore.
- Bank of Baroda: Shares slipped 1% to Rs 234.35 during the current session, with a market cap of Rs 1.21 lakh crore.
The market's reaction underscores the significance of the NSE IPO, as major financial institutions adjust their positions ahead of the highly anticipated public offering.