Mumbai, India – The National Stock Exchange (NSE) has officially filed its draft red herring prospectus (DRHP) with SEBI for an initial public offering (IPO) estimated at Rs 30,000 crore. This significant move has immediately impacted the stock market, particularly boosting shares of its existing shareholders, with some rallying as much as 14%.
Selling Shareholders See Significant Gains
Among the entities poised to offload stakes in the proposed IPO, shares of The New India Assurance Company Limited (NIACL) soared by 14%. IFCI Ltd, which holds a majority stake in Stock Holding Corporation of India Ltd (another selling shareholder), climbed 4.3% to reach Rs 93.95 per share. General Insurance Corporation of India (GIC RE), also listed as a proposed selling shareholder, saw its stock rise by 2.37%.
Other key selling shareholders include State Bank of India (SBI) and Bank of Baroda (BOB), both of whom also experienced modest gains following the announcement. The IPO is structured as an offer for sale (OFS) of up to 14.89 crore shares, representing approximately 6% of NSE's paid-up capital.
LIC Rises on Value Unlocking Hopes
Notably, Life Insurance Corporation of India (LIC) shares jumped 4.71% to Rs 437.85, despite LIC not being among the direct selling shareholders in this IPO. As the largest shareholder in NSE, holding 10.72% of its equity, the market is anticipating a substantial 'value unlocking opportunity' for LIC from the listing of India's largest stock exchange.
NSE's Market Dominance and Key Investors
According to the draft papers, NSE maintains its position as India's largest exchange by total turnover in the cash market. Globally, it ranks as the third-largest in terms of the number of trades in cash equities, as per data from the World Federation of Exchanges.
The exchange boasts a diverse group of investors, including prominent figures such as Radhakishan Shivkishan Damani, Dolly Khanna, and Raamdeo Agrawal. These institutional and individual investors stand to benefit from the long-anticipated public listing of the National Stock Exchange.