NSE's upcoming IPO: Which investors will offload their shares?
What's the story
India's biggest stock exchange, the National Stock Exchange (NSE), is gearing up for its long-awaited initial public offering (IPO). The move is likely to be one of India's biggest IPOs. According to CNBC-TV18, several marquee shareholders are likely to exit via the offer-for-sale (OFS) route. This means they will sell their shares in the market instead of raising fresh capital for the company.
Stakeholders
Stock Holding Corporation likely to offload 0.44% stake
Among the key shareholders, Stock Holding Corporation of India is likely to sell a stake of about 0.44% in the IPO. The firm currently owns 4.4% in NSE, which means a partial dilution. At an estimated valuation of ₹5 lakh crore, this sale could bring in around ₹2,200 crore for them. Notably, Stock Holding Corporation of India has a government-linked ownership structure with IFCI holding a 52.66% stake in it.
LIC's role
LIC likely to offload over 1% stake
Insurance giant Life Insurance Corporation of India (LIC) is also likely to be a major seller, with plans to offload over 1% stake in the NSE IPO. LIC is the biggest shareholder in NSE with a 10.7% holding, making its participation critical to the size and success of this offering. Other institutional investors like New India Assurance, GIC Re, ChrysCapital and Temasek Holdings are also likely to participate in this OFS.
Listing details
NSE IPO to be executed via OFS route
The NSE IPO will be executed through the OFS route in India, meaning no fresh capital will be raised by the exchange. The proceeds from this listing will go to selling shareholders. This marks a major milestone for NSE, which has been trying to go public for almost a decade now.