Shares of State Bank of India (SBI), Bank of Baroda (BoB), General Insurance Corporation of India (GIC RE), and The New India Assurance Company Ltd are under scrutiny following the National Stock Exchange's (NSE) submission of draft papers for its proposed Initial Public Offering (IPO) to market regulator SEBI.
Major Shareholders Offer Stakes in NSE IPO
These financial giants are among ten selling shareholders participating in the NSE's significant offer for sale. The IPO aims to offload up to 14.89 crore shares, each with a face value of Re 1, representing approximately 6 percent of NSE's paid-up capital.
Key Selling Shareholders and Their Holdings:
- State Bank of India (SBI): Holds 3.23 percent (79,847,050 shares) in NSE and plans to offload 2,47,50,000 equity shares. SBI Capital Markets Limited, an associate, holds an additional 4.33 percent.
- Bank of Baroda (BoB): Intends to sell up to 1,09,86,250 shares.
- General Insurance Corporation of India (GIC RE): Plans to offload up to 1,06,58,000 shares.
- The New India Assurance Company Ltd: Owns 1.42 percent (3,52,00,000 shares) and is looking to sell up to 1,05,00,000 shares.
LIC's Position and Future Value
Life Insurance Corporation of India (LIC) shares are also expected to remain in focus, despite not being among the immediate selling shareholders in this proposed offer. LIC is the largest shareholder in NSE, holding a substantial 10.72 percent stake, equivalent to 26,52,75,000 shares. The IPO is widely viewed as a crucial opportunity for LIC to unlock significant value from its investment in the future.
Other listed entities with stakes in NSE include HDFC Life Insurance Company Limited (0.5%), Indian Bank (0.34%), SBI Life Insurance Co Ltd (0.33%), Tata Investment Corporation Ltd (0.20%), Balkrishna Industries (0.13%), and Punjab National Bank (0.11%).
IPO Structure and Allocation
The NSE IPO will proceed via a book-building process. Not more than 50 percent of the net offer will be allocated to qualified institutional buyers (QIBs). Non-institutional bidders will be assigned not less than 15 percent, while retail bidders will receive not less than 35 percent of the net offer.
A consortium of merchant bankers, including Kotak Mahindra Capital Company, JM Financial Ltd, Morgan Stanley India Company Private Limited, and several others, will manage the offer. MUFG Intime India Private Limited has been appointed as the registrar to the issue.