State Bank of India (SBI) is set to earn around ₹5,086 crore from the National Stock Exchange (NSE)'s upcoming initial public offering, on an original investment of just ₹1.98 crore.
The country's largest lender acquired 24.75 million shares in NSE between 1993 and 1999 at a weighted average cost of 80 paise per share, according to NSE's Draft Red Herring Prospectus (DRHP) filed with the Securities and Exchange Board of India (SEBI). Based on NSE's unlisted market closing price of ₹2,055 apiece on Wednesday, that works out to a roughly 2,568-fold return, according to Bloomberg. The figure does not include the value of SBI's remaining unsold stake in the exchange.
The NSE filed its DRHP on Wednesday, taking its first formal step toward a public listing. The proposed issue is estimated at around ₹30,000 crore, based on NSE's current unlisted market valuation of around ₹5 lakh crore. The IPO is structured entirely as an offer for sale (OFS) of up to 148.9 million shares, representing nearly 6% of NSE's paid-up capital. No fresh equity will be raised.
1 June 2026
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If the issue goes through at this size, it would surpass the ₹27,870 crore raised by Hyundai Motor India in 2024, making it the largest IPO in India's capital market history. Since regulations bar a stock exchange from listing on its own platform, NSE's shares will trade on the rival BSE.
SBI is the largest selling shareholder, while MS Strategic (Mauritius) Limited follows with up to 16 million shares, and the Canada Pension Plan Investment Board has offered up to 11.87 million shares. Other sellers include Aranda Investments (Mauritius) with up to 11.24 million shares, and Bank of Baroda and Stock Holding Corporation of India, each offloading around 11 million shares.
Among public sector insurers, General Insurance Corporation of India (GIC Re) is divesting up to 10.65 million shares and The New India Assurance Company up to 10.5 million shares. National Insurance Company and United India Insurance Company are each selling around 6 million shares.
Life Insurance Corporation of India (LIC), NSE's single largest shareholder with a 10.72% stake, is not among the selling shareholders in the proposed offering.
Founding Shareholders in Line for Returns
SBI is not the only early backer set for an outsized gain. Stock Holding Corporation of India, which is selling around 11 million shares, acquired much of its stake at 46 paise per share and is on track for a roughly 4,467-fold return based on the gray market price, according to Bloomberg. Other founding shareholders, including GIC Re, New India Assurance, National Insurance, and Oriental Insurance, are also in line for sizable returns, as much as 6,422 times for the last three, the report added.
Among foreign shareholders, Singapore's Temasek Holdings plans to sell around 11.25 million shares. It acquired NYSE Euronext's 5% stake in NSE in 2010 for more than ₹780 crore and the current gray market price implies a roughly 33-fold increase in value since then. Morgan Stanley's return is on track for around 31 times. By comparison, the benchmark Nifty 50 index has risen 4.61 times since 2010, Bloomberg reported.
