State Bank of India has split its proposed sale of National Stock Exchange of India Ltd. shares between itself and SBI Capital Markets ahead of NSE's initial public offering.
SBI will sell 15.97 million shares, compared with 24.75 million in the June 17 draft red herring prospectus. SBI Capital Markets will sell 8.78 million shares. Together, the two sales total 24.75 million shares, the number SBI had originally proposed to offer.
The revised allocation was set out in an Aug. 10 addendum to the DRHP and carried into NSE's red herring prospectus.
SBI Stake Sale
SBI held 79.85 million NSE shares, while SBI Capital Markets held 107.25 million shares, according to the offer documents. SBI's weighted average acquisition cost was Rs 0.80 a share, compared with Rs 0.38 for SBI Capital Markets.
The revised documents show SBI selling 15,969,410 shares and SBI Capital Markets selling 8,780,590 shares.
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Capital Markets Role
SBI Capital Markets is an associate of SBI and a book-running lead manager for the IPO. The RHP says it will be involved only in marketing because of the restrictions under Regulation 21A of the SEBI Merchant Bankers Regulations.
The DRHP had already identified SBI Capital Markets as a BRLM and said its role would be limited to marketing under the applicable regulations.
Offer Size
NSE's overall offer has been reduced to 126.44 million shares in the RHP from 148.91 million shares in the DRHP.
SBI's direct portion has therefore fallen, but the shares shifted to SBI Capital Markets bring the two entities' sales to the same 24.75 million shares originally allocated to SBI.
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