- SEBI's observations on NSE IPO await share allocation between SBI and SBICAPS
- SBICAPS joined SBI as selling shareholder, splitting shares for the NSE IPO
- SBI to sell 15.97 million shares, SBICAPS to sell 8.78 million shares in the offer
The Securities and Exchange Board of India's (SEBI) observations on the proposed National Stock Exchange IPO are awaiting completion of a share allocation process between State Bank of India (SBI) and SBI Capital Markets Ltd (SBICAPS), a highly placed source said.
The development follows a change in the selling shareholder structure for the NSE IPO. SBICAPS has joined SBI as a selling shareholder, with the two entities now splitting the shares that were earlier proposed to be sold by SBI.
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Under the revised structure, SBI will sell up to 15.97 million NSE shares, while SBICAPS will sell up to 8.78 million shares. The overall size of the offer remains unchanged.
The share transfer process between the two SBI group entities may take some time, following which the revised shareholding structure will be reflected in NSE's draft red herring prospectus (DRHP).
NSE has already updated its DRHP through an addendum to reflect the revised allocation.
A highly placed source said the change needs to be completed and incorporated into the DRHP before the IPO application can be processed further by SEBI.
The NSE IPO comprises an offer for sale by existing shareholders, with no fresh issue of shares by the exchange.
SBICAPS' inclusion is also significant given its role as one of the lead merchant bankers to the NSE IPO. The firm is now both part of the SBI group entities involved in the revised share allocation and among the bankers advising on the IPO.
The proposed restructuring does not change the overall issue size but requires the necessary documentation and DRHP updates before SEBI can proceed with its observations.
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