NSE IPO: SBI, CPP Investments And Other Shareholders Set To Earn ₹16,500 Crore Windfall Gains

The upcoming initial public offering (IPO) of the National Stock Exchange (NSE) is set to generate substantial returns for its selling shareholders, including several state-owned institutions that acquired shares at significantly lower prices.

According to NSE’s red herring prospectus, the 10 shareholders offering shares in the IPO could collectively receive around ₹17,035 crore at the upper end of the price band of ₹1,785 per share.

Their combined acquisition cost for these shares was approximately ₹534 crore, translating into estimated gains of nearly ₹16,501 crore, as per a report by Moneycontrol.

SBI, institutional investors among biggest beneficiaries

State Bank of India (SBI) is expected to record the largest absolute gain among the selling shareholders. The bank is offering 15.97 million shares acquired at ₹0.80 each. At the IPO’s upper price band, the stake sale could generate about ₹2,851 crore, compared with an initial acquisition cost of around ₹1.28 crore.

Canada Pension Plan Investment Board (CPP Investments), which is selling 11.87 million shares, is expected to receive nearly ₹2,120 crore against an acquisition cost of about ₹384.9 crore.

Mauritius-based investors Aranda Investments and MS Strategic are also among the major beneficiaries. Their shares are expected to fetch around ₹2,007 crore and ₹1,964 crore, respectively.

Other shareholders, including The New India Assurance Company, SBI Capital Markets, Bank of Baroda, Stock Holding Corporation of India, General Insurance Corporation of India and United India Insurance Company, are also likely to see significant gains.

Share sale size reduced from earlier proposal

The revised IPO documents show that shareholders will now offer about 126 million shares through the offer for sale (OFS), lower than the nearly 149 million shares proposed in the draft red herring prospectus filed earlier.

SBI has reduced the number of shares it plans to sell, cutting its proposed stake sale from around 1% to 0.7%. SBI Capital Markets has been added as a selling shareholder and will offer about 0.35% stake.

Other institutions have also reduced their planned stake sales. General Insurance Corporation of India and Bank of Baroda have lowered their proposed offerings, while retaining a portion of their holdings.