The National Stock Exchange of India (NSE) has reportedly reduced the price range for its upcoming initial public offering (IPO) to Rs 1,700 per share, down from the previously targeted Rs 1,785. This development, reported by Bloomberg, places shares of major listed entities like State Bank of India (SBI), Bank of Baroda, GIC Re, and New India Assurance under market scrutiny as they prepare to offload their stakes in the exchange.
The revised price band means these institutional shareholders will likely receive lower proceeds from their stake sales than initially anticipated. The IPO is structured as an offer for sale (OFS), with several key players divesting their holdings.
Major Shareholders Impacted by Price Revision
Among the prominent sellers, SBI is expected to sell approximately 2.48 crore shares of NSE. Bank of Baroda plans to divest around 1.10 crore shares, while GIC Re intends to sell about 1.07 crore shares. New India Assurance is also a listed entity set to participate in the stake sale.
Initially, the NSE IPO was projected to involve the sale of roughly 14.89 crore shares, representing about 6% of its total equity stake. However, the Bloomberg report suggests that the exchange might further reduce the stake being offered to approximately 5.5% of the total equity capital. This adjustment comes as some shareholders have reportedly reconsidered selling their stakes at the newly lowered price.
Revised Valuation and Market Context
With the reduced stake offering of 5.5%, the IPO is now expected to raise around Rs 24,300 crore, valuing NSE at up to Rs 4.42 lakh crore. This is a noticeable decrease from the earlier targeted valuation of up to Rs 5.26 lakh crore.
The decision to scale down the deal size reflects growing concerns about the Indian primary market's capacity to absorb multiple large transactions concurrently. This pressure could intensify further as Jio Platforms, a telecommunications giant, moves closer to its own potential initial public offering, which is expected to be one of India's largest IPOs to date.
Other entities, such as IFCI, hold indirect exposure to NSE through Stock Holding Corporation of India. Notably, LIC, which is NSE's largest shareholder, is reportedly planning to retain its existing stake.