Winner Takes It All: Who Gets The Biggest Slice of the Rs 30,000-Crore Plus NSE IPO Pie?

The National Stock Exchange of India (NSE) is gearing up for its listing. The stock exchange’s listing is one of the most anticipated initial public offerings in the history of the domestic primary markets. With the Draft Red Herring Prospectus (DRHP) filed and the Securities and Exchange Board of India’s green light in place, market participants are eagerly awaiting the formal announcement of the price band and the dates for the subscription.

According to NSE’s DRHP, the offer size is structured entirely as an Offer for Sale (OFS) comprising up to 148.91 million equity shares of face value of Re 1 each. In the unlisted market, the exchange's shares are trading between Rs 1,999 and Rs 2,040 per share. Based on the upper end of these estimates for NSE’s issue price, the overall offer size is likely to range between Rs 29,766.21 crore and Rs 30,376.73 crore.

NSE’s Rs 30,000 Crore IPO Pie

NSE’s Rs 30,000 crore plus IPO pie is likely to unlock value not just for the exchange but also for its early backers, the investor selling shareholders. Notably, as many as 10 selling shareholders are set to take part in the OFS. Since most of these institutional backers acquired their stakes years ago at nominal prices, the public listing is set to unlock immense value. However, it remains to be seen who gets the biggest slice of the Rs 30,000 crore pie.

Who Gets The Biggest Slice In NSE IPO

The 10 investors selling shareholders' stake in NSE IPO include banks like State Bank of India and Bank of Baroda, funds like  MS Strategic (Mauritius), Canada Pension Plan Investment Board and Aranda Investments (Mauritius). The investor selling shareholders also include insurers like General Insurance Corporation of India, The New India Assurance Company, National Insurance Company, United India Insurance Company and Stock Holding Corporation of India. Here’s a look at how much each selling shareholder is set to make once the stock lists:

State Bank of India

State Bank of India leads the list in terms of the size of its stake sale. The bank is set to pare up to 24.75 million equity shares, making up the largest individual block in the OFS. The public sector lender acquired these shares at a weighted average cost of acquisition (WACO) of just Rs 0.80 per share, which translates to a total cost of acquisition of Rs 1.98 crore. At the upper end of the unlisted price trend of Rs 2,040 per share, the sale of these shares will be worth Rs 5,049 crore, which in turn is expected to lead to gross gains of Rs 5,047.02 crore.

MS Strategic (Mauritius)

MS Strategic (Mauritius) is set to sell up to 16 million equity shares in the OFS. MS Strategic (Mauritius) acquired its stake at a cost of Rs 66.54 per share, which translates into a total cost of Rs 106.46 crore. If the share sale occurs in line with the unlisted share price estimate of Rs 2,040 per share, the share sale will be worth Rs 3,264.00 crore, generating a gain of Rs 3,157.54 crore.

Canada Pension Plan Investment Board

Canada Pension Plan Investment Board is paring up to 11.87 million equity shares through the public issue. The  investment management organisation acquired the shares at a weighted average price of Rs 324.13 per share, bringing its total cost of acquisition to Rs 384.87 crore. Based on the upper end of the unlisted share price trend of Rs 2,040 per share, the offloaded stake will be worth Rs 2,422.31 crore, resulting in an estimated gross profit of Rs 2,037.43 crore.

Aranda Investments (Mauritius) Pte

Aranda Investments (Mauritius) Pte is set to offload up to 11.24 million shares. The entity bought shares of the exchange at a cost of Rs 62.38 per share, which translates to a total investment cost of Rs 70.15 crore. Based on the Rs 2,040 upper mark of unlisted share price estimates, the proceeds from the sale will be worth Rs 2,294.25 crore, translating to a gain of Rs 2,224.10 crore.

Bank of Baroda

Bank of Baroda plans to sell up to 10.98 million equity shares in the IPO. The public sector bank holds these shares at a cost of Rs 0.54 per share, making its total investment outlay Rs 59.33 lakh. Selling at the upper price assumption of Rs 2,040 per share will value the bank’s sale portion at Rs 2,241.20 crore, leading to an estimated gain of Rs 2,240.60 crore.

Stock Holding Corporation of India

Stock Holding Corporation of India is expected to sell up to 10.89 million equity shares on the block. With an initial acquisition price of Rs 0.46 per share, the company's total purchase cost comes to approximately Rs 50.09 lakh. Based on the price for unlisted shares of NSE of Rs 2,040 per share, the divestment is set to be worth Rs 2,221.56 crore, leaving the company with a gross gain of Rs 2,221.06 crore.

General Insurance Corporation of India

General Insurance Corporation of India is participating in the OFS with an offer of up to 10.65 million equity shares. Having acquired the equity at a cost of Rs 5.26 per share, its total acquisition cost comes to Rs 5.61 crore. At the potential cap price of Rs 2,040 per share, GIC Re will gain Rs 2,174.23 crore from the transaction, leading to a likely profit of Rs 2,168.63 crore for the insurer.

The New India Assurance Company

The New India Assurance Company is divesting up to 10.50 million equity shares. With an acquisition base of Rs 0.32 per share, its total outlay was Rs 33.60 lakh. At an estimated issue price based on the unlisted price trend of Rs 2,040 per share, the insurer is likely to generate Rs 2,142.00 crore from the sale, translating to a projected gain of Rs 2,141.66 crore.

National Insurance Company

National Insurance Company is offering up to 6 million equity shares. The state-owned general insurer acquired these shares at an average price of Rs 0.32 per share, amounting to an initial investment of Rs 19.20 lakh. Divesting these shares at the upper price band level of Rs 2,040 per share will yield Rs 1,224.00 crore, creating a gain of Rs 1,223.81 crore.

United India Insurance Company

United India Insurance Company is also divesting up to 6 million equity shares in the offer. Its purchase price stands at Rs 0.50 per share, reflecting an aggregate cost of Rs 30 lakh. A sale at the Rs 2,040 per share estimated level values the offloaded shares at Rs 1,224.00 crore, giving the insurer a projected gain of Rs 1,223.70 crore.

The upcoming public listing of the NSE marks a historic wealth-unlocking event for both the exchange and its early institutional promoters. The State Bank of India, which is a foundational investor in the exchange, is set to net a multi-thousand-crore windfall on fractional initial investments.

As D-Street awaits the announcement of the price band, the NSE IPO is positioned to act as a bellwether for domestic capital markets.