Bank Of Baroda To Sell 35% NSE Stake As Exchange Heads For IPO

State-owned Bank of Baroda plans to sell up to 76,90,375 equity shares of the National Stock Exchange of India (NSE), representing 35% of its holding in the exchange, through an Offer for Sale (OFS) as part of NSE’s proposed initial public offering (IPO).

In a regulatory filing on Tuesday, September 8, Bank of Baroda said the proposed divestment is subject to the requisite regulatory approvals.

The lender added that the NSE shares were transferred to an escrow account on September 8 as part of the OFS process.

According to the Bank of Baroda filing, the transaction is expected to be completed by the end of September 2026, as indicated by NSE.

The lender said the consideration from the sale will be received after the OFS process is completed.

Bank of Baroda will tender its NSE equity shares as part of the proposed IPO. The transaction is not classified as a related-party transaction, while the lender also said the sale does not form part of any Scheme of Arrangement.

The bank received ₹76.90 crore in dividend income from NSE during financial year 2025-26, according to its regulatory disclosure.

NSE IPO Could Be India's Largest

The proposed sale by Bank of Baroda comes as NSE prepares to access the public markets after a prolonged period of anticipation around its listing. The lender’s disclosure, however, only covers its own stake sale and does not specify the value it expects to realise from the transaction.

NSE’s IPO is likely to open for public subscription on September 18 and list on September 25. The exchange is expected to announce the IPO price band on September 15, with the anchor book likely to open on September 17, as per a report by CNBC-TV18.

The public issue is expected to raise around ₹30,000 crore and could become India’s largest IPO, surpassing Hyundai Motor India’s ₹27,870-crore offering in 2024, the report said.

The IPO is expected to comprise an OFS of up to 148.9 million equity shares with a face value of ₹1 each, equivalent to nearly 6% of NSE’s paid-up equity capital.

As the issue will not include any fresh shares, NSE itself will not receive proceeds from the IPO.