NSE IPO: SBI, New India Assurance Among Top Beneficiaries With ₹16,500 Crore Windfall

The much-awaited National Stock Exchange of India (NSE) IPO is finally set to hit the Street next week, giving several long-term shareholders an opportunity to cash in on investments made decades ago.

Although NSE has trimmed the size of its initial public offering, preventing it from becoming India’s biggest-ever IPO, the issue is still set to rank among the country’s largest. At the upper end of the price band, several existing shareholders stand to book massive gains on their holdings.

Who Gains How Much From NSE IPO?

State Bank of India (SBI) is among the biggest beneficiaries in absolute terms. The PSU lender could make a gain of around ₹2,849 crore, translating into a staggering 2,23,025% return, based on its acquisition cost of just ₹0.80 per share and the IPO’s upper price of ₹1,785.

The New India Assurance Company is set to record the biggest percentage gain among the major selling shareholders. It acquired NSE shares at just ₹0.32 apiece and could earn around ₹1,874 crore, representing a return of approximately 5,57,713%.

SBI Capital Markets could generate a gain of about ₹1,567 crore, or a 4,69,637% return, on shares acquired at ₹0.38 apiece.

Stock Holding Corporation of India stands to gain around ₹1,104 crore, representing a 3,87,943% return on its investment.

Other major beneficiaries include United India Insurance Company, which could make around ₹1,071 crore, and Bank of Baroda, which could gain approximately ₹1,372 crore.

General Insurance Corporation of India could earn about ₹1,101 crore, representing a return of nearly 33,835%.

Meanwhile, Canada Pension Plan Investment Board, MS Strategic and Aranda Investments could collectively pocket more than ₹5,500 crore from the IPO.

NSE IPO: Selling Shareholders’ Potential Windfall

Selling Shareholder	Maximum Equity Shares Offered	Weighted Avg Cost (₹/share)	Gain (₹ crore)	Return
The New India Assurance Company	1,05,00,000	0.32	1,873.91	5,57,713%
SBI Capital Markets	87,80,590	0.38	1,567.00	4,69,637%
Stock Holding Corporation of India	61,87,500	0.46	1,104.18	3,87,943%
United India Insurance Company	60,00,000	0.50	1,070.70	3,56,900%
Bank of Baroda	76,90,375	0.54	1,372.31	3,30,456%
State Bank of India	1,59,69,410	0.80	2,849.26	2,23,025%
General Insurance Corporation of India	61,87,500	5.26	1,101.21	33,835%
Aranda Investments (Mauritius)	1,12,46,336	62.38	1,937.31	2,761%
MS Strategic (Mauritius)	1,10,00,000	66.54	1,890.30	2,583%
Canada Pension Plan Investment Board	1,18,74,060	324.13	1,734.64	451%

Together, these 10 shareholders could make a combined profit of around ₹16,500 crore on an estimated investment of just ₹534 crore, based on the IPO’s upper price band.

NSE IPO: Key Details

The NSE IPO is scheduled to open for subscription on September 17 and close on September 21. The exchange has cut the issue size by more than 15%, but the offering would still rank as India’s third-largest IPO.

At the upper end of the price band, NSE is looking to raise around ₹22,567 crore.

The exchange has reserved 50% of the net issue for qualified institutional buyers (QIBs), 35% for retail investors and 15% for non-institutional investors (NIIs).

NSE remains India’s dominant stock exchange by trading volumes. According to its disclosures cited in a Reuters report, it commands around 95% of the cash equity market and about 75% of the equity derivatives market.