NSE IPO: Selling shareholders eye ₹16,500cr profit
What's the story
The selling shareholders of the National Stock Exchange (NSE) are poised to make huge profits from its much-anticipated initial public offering (IPO). The 10 selling shareholders, as per NSE's red herring prospectus, will together get around ₹17,035 crore from their shares at the upper end of the IPO price band. The combined acquisition cost for these shares was only around ₹534 crore. NSE's IPO opens tomorrow. The ₹22,561.57 crore issue will be available for subscription till September 21.
Profit distribution
SBI set to make biggest profit
Among the selling shareholders, State Bank of India (SBI) is set to make the biggest profit.
The bank is offering 15.97 million shares at an acquisition cost of just ₹0.80 per share.
At the upper price band, these shares would fetch around ₹2,851 crore against an acquisition cost of only ₹1.28 crore.
Institutional gains
CPP Investments
Other institutional shareholders are also in line for huge profits.
Canada Pension Plan Investment Board (CPP Investments) is offering 11.87 million shares at an acquisition cost of ₹324.13 per share.
At the upper band, these shares would fetch around ₹2,120 crore against an acquisition cost of about ₹384.9 crore.
International profits
Aranda Investments and MS Strategic
Mauritius-based investor Aranda Investments is offering 11.25 million shares acquired at ₹62.38 apiece.
The shares would generate around ₹2,007 crore against an acquisition cost of about ₹70.2 crore.
Similarly, MS Strategic (Mauritius), which acquired its 11 million shares at ₹66.54 apiece, would receive about ₹1,964 crore from the sale with an acquisition cost of around ₹73.2 crore.
Additional profits
New India Assurance Company and SBI Capital Markets
The New India Assurance Company is offering 10.5 million shares at an acquisition cost of just ₹0.32 apiece. At the upper band, the sale would generate around ₹1,874 crore against an acquisition cost of merely ₹33.6 lakh.
SBI Capital Markets is selling 8.78 million shares at an acquisition cost of ₹0.38 apiece and would receive around ₹1,567 crore compared to an acquisition cost of around ₹33.4 lakh.
Further gains
Bank of Baroda would fetch around ₹1,373 crore
Bank of Baroda's 7.69 million shares at an acquisition cost of ₹0.54 apiece would fetch around ₹1,373 crore.
Stock Holding Corporation of India would get around ₹1,104 crore for its 6.19 million shares.
General Insurance Corporation of India is also selling 6.19 million shares and would receive around ₹1,104 crore against an acquisition cost of only ₹3.25 crore.