- Public sector shareholders will sell shares worth nearly Rs 15,500 crore in NSE IPO
- PSUs own about 31% of NSE and may sell 10% of their holdings in the offer for sale
- Life Insurance Corporation may offload shares worth Rs 5,300 crore, diluting 1% equity
Public sector shareholders of the National Stock Exchange (NSE) are expected to account for the bulk of share sales in the bourse's much-anticipated initial public offering, with state-owned investors preparing to offload shares worth nearly Rs 15,500 crore through the offer for sale (OFS), people familiar with the matter told NDTV Profit.
The proposed transaction could result in a total equity dilution of 4-5% at NSE, making it one of the largest market listings in India.
Public sector undertakings collectively own about 31% of NSE. Sources indicated that PSU shareholders are being encouraged to sell around 10% of their holdings in the OFS, translating into an equity dilution of roughly 3.1% at the exchange level.
Among the sellers, the largest contribution is expected to come from the state-owned insurance giant Life Insurance Corporation of India, which is the biggest shareholder in NSE. The insurer is likely to offload shares worth approximately Rs 5,300 crore, implying a dilution of slightly more than 1% of NSE's equity.
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Another significant seller could be Stock Holding Corporation of India, which is expected to sell shares valued at nearly Rs 2,200 crore. The sale would correspond to about 0.44% dilution at the exchange level.
The State Bank of India group and its affiliates are also expected to participate actively in the OFS. Combined stake sales from the group could amount to around Rs 3,700 crore, representing approximately 0.75% equity dilution.
Meanwhile, PSU insurers as a group are estimated to offload shares worth close to Rs 4,000 crore, contributing another 0.8% dilution.
To achieve the targeted size of the offering, NSE is also expected to tap institutional shareholders. Sources estimate institutional selling could range between Rs 5,000 crore and Rs 7,500 crore, taking the total OFS size to about Rs 20,000-23,000 crore.
At that level, overall equity dilution in the exchange is expected to be between 4% and 5%.
Among the institutional investors likely to participate in the OFS are The New India Assurance Company, GIC Re, Temasek Holdings and ChrysCapital, according to people aware of the discussions.
The planned share sale is a crucial step in NSE's long-awaited journey to the public markets. The exchange, which dominates India's equity derivatives segment and remains one of the world's largest exchanges by trading volumes, has been working to revive its IPO plans after years of regulatory hurdles.
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