NSE IPO to unlock multi-crore gains for shareholders

The much-awaited initial public offering (IPO) of the National Stock Exchange (NSE) is set to unlock significant value for its existing shareholders, with institutional investors, financial entities and industry veterans expected to reap gains worth thousands of crores.

The country’s largest stock exchange filed its draft papers with market regulator Sebi for its mega-IPO, estimated at around Rs 30,000 crore.

The offering, which will be entirely an Offer for Sale (OFS), is set to become the largest public issue in Indian stock market history.  At the estimated size, the NSE share-sale will surpass the Rs 27,870 crore IPO of Hyundai Motor India, which was launched in October 2024 and currently holds the record of the biggest IPO in the country.

Based on the prevailing unlisted market price of around Rs 2,000 per share, billionaire investor and DMart founder Radhakishan Damani’s 3.91 crore shares, representing a 1.58 per cent stake in NSE, are valued at about Rs 7,817 crore, making him one of the biggest individual beneficiaries of the proposed listing. Hero Enterprise Chairman Sunil Kant Munjal’s 1.02 crore shares, or a 0.41 per cent stake, are worth around Rs 2,040 crore, while Infosys co-founder S Gopalakrishnan’s 94.29 lakh shares, representing a 0.38 per cent holding, are valued at nearly Rs 1,886 crore. Individual investor Siddharth Balachandran’s 0.38 per cent stake is estimated to be worth about Rs 1,863 crore at current unlisted market valuations.

The IPO comprises the sale of 14.89 crore shares by existing shareholders, who will collectively divest nearly 6 per cent of their stake in the exchange.

Among selling shareholders, State Bank of India (SBI) is expected to emerge as the largest beneficiary. The country’s largest lender plans to offload 2.47 crore shares, potentially generating nearly Rs 4,950 crore based on current unlisted market prices. Notably, SBI’s weighted average acquisition cost stands at just 80 paise per share, suggesting the substantial appreciation the NSE has generated over the years.

Mauritius-based MS Strategic is expected to realise around Rs 3,200 crore through the sale of 1.6 crore shares, while Canadian pension fund CPPIB could garner around Rs 2,375 crore. Aranda Investments is likely to sell shares worth nearly Rs 2,250 crore.

Other major sellers include Bank of Baroda, which could receive around Rs 2,197 crore, followed by Stock Holding Corporation of India (Rs 2,178 crore), General Insurance Corporation of India (Rs 2,131 crore), and The New India Assurance Company Ltd (Rs 2,100 crore).