- State Bank of India plans to sell up to 2.48 crore NSE shares in the IPO
- NSE IPO includes an offer for sale of up to 14.89 crore equity shares only
- Life Insurance Corporation of India will not tender any shares in the offer
State Bank of India plans to be the largest shareholder participating in National Stock Exchange of India Ltd.'s proposed initial public offering, while Life Insurance Corporation of India, the exchange's biggest shareholder, does not intend to tender any shares in the offer.
The draft red herring prospectus, filed on June 17, showed the IPO will comprise an offer for sale of up to 14.89 crore equity shares. NSE will not issue any fresh shares and will not receive any proceeds from the offering. The participating shareholders will receive the proceeds from the shares they propose to sell, after deducting applicable expenses and taxes.
While some institutions plan to use the proposed listing to pare their holdings, several large shareholders have opted to retain their entire stakes.
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SBI Tops List of Proposed Sellers
State Bank of India plans to offer up to 2.48 crore shares in the IPO, making it the largest proposed seller by volume. The proposed sale represents nearly 31% of its current NSE holding of 7.98 crore shares.
MS Strategic (Mauritius) Ltd intends to offer up to 1.60 crore shares, equivalent to 53.8% of its existing stake of 2.98 crore shares, the highest proportion among the top 10 proposed sellers.
Canada Pension Plan Investment Board plans to tender up to 1.19 crore shares, or about 30% of its holding of 3.96 crore shares, while Aranda Investments (Mauritius) Pte Ltd proposes to offer 1.12 crore shares, representing 10% of its stake of 11.25 crore shares.
Bank of Baroda plans to offer 1.10 crore shares. Stock Holding Corporation of India Ltd proposes to tender 1.09 crore shares, while General Insurance Corporation of India plans to sell up to 1.07 crore shares.
The New India Assurance Company Ltd intends to offer 1.05 crore shares in the proposed IPO. National Insurance Company Ltd and United India Insurance Company Ltd each plan to tender 60 lakh shares.
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LIC, Damani Among Investors Staying Out
LIC, which held 26.53 crore NSE shares as of June 15, remained absent from the list of shareholders proposing to participate in the offer. The insurer owned 10.72% of NSE's pre-offer equity capital, making it the exchange's largest shareholder.
SBI Capital Markets Ltd, another major investor with a 4.33% stake, also does not propose to tender any shares.
PI Opportunities Fund I, DVI Fund (Mauritius) Ltd, TIMF Holdings, investor Radhakishan Shivkishan Damani and Rimco (Mauritius) Ltd likewise do not feature among the proposed sellers.
The proposed IPO remains subject to regulatory approvals and the filing of the red herring prospectus. The final offer size and the number of shares proposed to be tendered by participating shareholders may change before the issue opens for subscription.
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