Half of the National Stock Exchange’s (NSE’s) oldest institutional investors are set to unlock sizable gains through the exchange’s proposed initial public offering (IPO), with the draft prospectus showing that many acquired their shares at weighted average costs well below the ₹1 face value after decades of holding the stock. At a market-estimated offer-for-sale (OFS) price of around ₹2,100 per share, investors are poised to monetise their holdings for anywhere between ₹1,250 crore and ₹5,000 crore.

Largest seller

The largest seller in the IPO, the State Bank of India (SBI), is offering up to 2.48 crore shares of the 7.98 crore shares (3.23 per cent stake) it holds at a weighted average cost of ₹0.80 per share. At the indicative price, SBI’s proposed sale alone would be worth over ₹5,000 crore.

Bank of Baroda acquired NSE shares at ₹0.54 apiece, while Stock Holding Corporation of India has a weighted average acquisition cost of ₹0.46. Both are offering 1.09 crore and 1.08 crore shares for sale, respectively, translating into potential proceeds of about ₹2,300 crore each at the estimated price.

Among other public sector undertakings (PSUs), The New India Assurance Company and National Insurance Company each hold shares acquired at ₹0.32 apiece, while United India Insurance’s acquisition cost is ₹0.50 per share. GIC Re’s acquisition cost stands at ₹5.26 per share. These investors could realise proceeds ranging from about ₹1,260 crore to ₹2,300 crore, depending on the size of their stake sales.

NSE also issued bonus shares in a 4:1 ratio in November 2024, which effectively reduced the weighted average acquisition cost per share.

Foreign investors who entered at a later stage with relatively higher acquisition costs will pocket around ₹2,300 crore to ₹3,250 crore. MS Strategic (Mauritius) Ltd, Aranda Investments (Mauritius) Pte Ltd and Canada Pension Plan Investment Board have weighted average acquisition costs of ₹66.54, ₹62.38 and ₹324.13 per share, respectively.

The proposed IPO is entirely an OFS of 14.89 crore shares, or nearly 6 per cent of NSE’s paid-up capital, with no fresh issue, meaning the exchange itself will not receive any proceeds. Based on the market-estimated price, the total OFS size could exceed ₹30,000 crore, making it one of India’s largest public offerings.

The last IPO that came close to this size was Hyundai Motor India, which raised nearly ₹28,000 crore through its IPO in 2024, and LIC before that, which raised ₹21,000 crore in 2022.

Despite the issue being an OFS, marketmen are positive about the issue. Vincent KA, Senior Research Analyst at Geojit Investments, said: “NSE IPO is expected to attract strong investor interest, supported by its dominant market position, robust profitability and direct exposure to the long-term growth of India’s capital markets.”

LIC stays out

Meanwhile, Life Insurance Corporation of India (LIC), the largest shareholder with a 10.72 per cent stake, is not participating. At the same indicative price, its holding would be valued at over ₹54,000 crore.

Other investors, including Radhakishan Damani, Rakesh Gangwal and Nandan Nilekani, are also not selling, indicating that some see NSE as a long-term compounding opportunity rather than an exit.

Published on June 18, 2026