NSE IPO to Unlock Multi-Crore Gains for Shareholders
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NSE''s mega IPO is set to unlock significant value for shareholders. SBI, Radhakishan Damani, and other investors to reap multi-crore gains from India''s largest public issue.
Illustration: Dominic Xavier/Rediff
New Delhi, Jun 18 (PTI) The much-awaited initial public offering (IPO) of the National Stock Exchange (NSE) is set to unlock significant value for its existing shareholders, with institutional investors, financial entities and industry veterans expected to reap gains worth thousands of crores.
The country's largest stock exchange on Wednesday filed its draft papers with market regulator Sebi for its mega-IPO, estimated at around Rs 30,000 crore. The offering, which will be entirely an Offer for Sale (OFS), is set to become the largest public issue in Indian stock market history.
At the estimated size, the NSE share-sale will surpass the Rs 27,870 crore IPO of Hyundai Motor India, which was launched in October 2024 and currently holds the record of the biggest IPO in the country.
Based on the prevailing unlisted market price of around Rs 2,000 per share, billionaire investor and DMart founder Radhakishan Damani's 3.91 crore shares, representing a 1.58 per cent stake in NSE, are valued at about Rs 7,817 crore, making him one of the biggest individual beneficiaries of the proposed listing.
Hero Enterprise Chairman Sunil Kant Munjal's 1.02 crore shares, or a 0.41 per cent stake, are worth around Rs 2,040 crore, while Infosys co-founder S Gopalakrishnan's 94.29 lakh shares, representing a 0.38 per cent holding, are valued at nearly Rs 1,886 crore.
Individual investor Siddharth Balachandran's 0.38 per cent stake is estimated to be worth about Rs 1,863 crore at current unlisted market valuations.
The IPO comprises the sale of 14.89 crore shares by existing shareholders, who will collectively divest nearly 6 per cent of their stake in the exchange.
Among selling shareholders, State Bank of India (SBI) is expected to emerge as the largest beneficiary. The country's largest lender plans to offload 2.47 crore shares, potentially generating nearly Rs 4,950 crore based on current unlisted market prices.
Notably, SBI's weighted average acquisition cost stands at just 80 paise per share, suggesting the substantial appreciation the NSE has generated over the years.
Mauritius-based MS Strategic is expected to realise around Rs 3,200 crore through the sale of 1.6 crore shares, while Canadian pension fund CPPIB could garner around Rs 2,375 crore. Aranda Investments is likely to sell shares worth nearly Rs 2,250 crore.
Other major sellers include Bank of Baroda, which could receive around Rs 2,197 crore, followed by Stock Holding Corporation of India (Rs 2,178 crore), General Insurance Corporation of India (Rs 2,131 crore), and The New India Assurance Company Ltd (Rs 2,100 crore).
National Insurance Company and United India Insurance Company are each expected to realise nearly Rs 1,200 crore from the share sale.
According to industry estimates, the proposed IPO could value NSE at more than Rs 5 lakh crore, making it one of the most valuable listed financial market infrastructure institutions globally.
The filing marks a major milestone for NSE, whose listing plans had remained stalled for nearly a decade due to regulatory challenges, including issues arising from the co-location controversy.
With around 1.8 lakh shareholders, NSE's public offering is expected to surpass Hyundai Motor India's Rs 27,870-crore IPO launched in October 2024 to become the country's largest-ever public issue.
According to market experts, NSE's shares are currently trading above Rs 2,050 in the unlisted market, implying a price-to-earnings multiple of around 50 times.
"The current unlisted market pricing at above Rs 2,050 (P/E- 50 times) appears significantly stretched, especially after a 15 per cent PAT decline in FY26 driven by Sebi's regulatory curbs on retail derivatives participation. We believe a fair IPO price discovery should be in the range of Rs 800- Rs 1,050, implying a reasonable 20â25x P/E on trailing earnings -- more aligned with exchange business fundamentals globally,"Â Rajesh Singla, CEO and Fund Manager at Alpha AMC, said.
He, further, said that investors holding unlisted shares at elevated valuations should factor in meaningful listing discount risk.
The country's largest stock exchange on Wednesday filed its draft papers with market regulator Sebi for its mega-IPO, estimated at around Rs 30,000 crore. The offering, which will be entirely an Offer for Sale (OFS), is set to become the largest public issue in Indian stock market history.
At the estimated size, the NSE share-sale will surpass the Rs 27,870 crore IPO of Hyundai Motor India, which was launched in October 2024 and currently holds the record of the biggest IPO in the country.
Based on the prevailing unlisted market price of around Rs 2,000 per share, billionaire investor and DMart founder Radhakishan Damani's 3.91 crore shares, representing a 1.58 per cent stake in NSE, are valued at about Rs 7,817 crore, making him one of the biggest individual beneficiaries of the proposed listing.
Hero Enterprise Chairman Sunil Kant Munjal's 1.02 crore shares, or a 0.41 per cent stake, are worth around Rs 2,040 crore, while Infosys co-founder S Gopalakrishnan's 94.29 lakh shares, representing a 0.38 per cent holding, are valued at nearly Rs 1,886 crore.
Individual investor Siddharth Balachandran's 0.38 per cent stake is estimated to be worth about Rs 1,863 crore at current unlisted market valuations.
The IPO comprises the sale of 14.89 crore shares by existing shareholders, who will collectively divest nearly 6 per cent of their stake in the exchange.
Among selling shareholders, State Bank of India (SBI) is expected to emerge as the largest beneficiary. The country's largest lender plans to offload 2.47 crore shares, potentially generating nearly Rs 4,950 crore based on current unlisted market prices.
Notably, SBI's weighted average acquisition cost stands at just 80 paise per share, suggesting the substantial appreciation the NSE has generated over the years.
Mauritius-based MS Strategic is expected to realise around Rs 3,200 crore through the sale of 1.6 crore shares, while Canadian pension fund CPPIB could garner around Rs 2,375 crore. Aranda Investments is likely to sell shares worth nearly Rs 2,250 crore.
Other major sellers include Bank of Baroda, which could receive around Rs 2,197 crore, followed by Stock Holding Corporation of India (Rs 2,178 crore), General Insurance Corporation of India (Rs 2,131 crore), and The New India Assurance Company Ltd (Rs 2,100 crore).
National Insurance Company and United India Insurance Company are each expected to realise nearly Rs 1,200 crore from the share sale.
According to industry estimates, the proposed IPO could value NSE at more than Rs 5 lakh crore, making it one of the most valuable listed financial market infrastructure institutions globally.
The filing marks a major milestone for NSE, whose listing plans had remained stalled for nearly a decade due to regulatory challenges, including issues arising from the co-location controversy.
With around 1.8 lakh shareholders, NSE's public offering is expected to surpass Hyundai Motor India's Rs 27,870-crore IPO launched in October 2024 to become the country's largest-ever public issue.
According to market experts, NSE's shares are currently trading above Rs 2,050 in the unlisted market, implying a price-to-earnings multiple of around 50 times.
"The current unlisted market pricing at above Rs 2,050 (P/E- 50 times) appears significantly stretched, especially after a 15 per cent PAT decline in FY26 driven by Sebi's regulatory curbs on retail derivatives participation. We believe a fair IPO price discovery should be in the range of Rs 800- Rs 1,050, implying a reasonable 20â25x P/E on trailing earnings -- more aligned with exchange business fundamentals globally,"Â Rajesh Singla, CEO and Fund Manager at Alpha AMC, said.
He, further, said that investors holding unlisted shares at elevated valuations should factor in meaningful listing discount risk.
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