The National Stock Exchange (NSE) IPO is moving closer to the market debut, and the spotlight is not limited to the exchange alone. Several listed companies could also benefit because they already own stakes in NSE and some are planning to sell part of those holdings through the public issue.
That makes the upcoming IPO an interesting trigger for a handful of banking and insurance stocks.
A detailed look at which stocks have the biggest exposure and how much of their NSE stake could actually be monetised? Let’s take a look –
Among the listed companies linked to the issue, State Bank of India (SBI) has one of the largest exposures.
SBI directly holds around 3.23% of NSE, while its subsidiary SBI Capital Markets owns another 4.33%. SBI Life Insurance Company also holds around 0.33%.
Under the revised arrangement, SBI has transferred around 87.81 lakh NSE shares to SBI Capital Markets. Even after the transfer, the overall NSE shares being offered by the SBI group remains unchanged at around 2.475 crore shares.
This makes SBI one of the biggest shareholders offloading stake in the IPO.
Bank of Baroda (BoB) is also among the key listed companies with direct NSE exposure.
The bank holds around 2.20 crore NSE shares, or 0.89%, according to the draft shareholding details. It plans to offer up to 1.10 crore shares through the offer for sale (OFS).
In other words, roughly half of its current NSE holding could be offered in the IPO, subject to the final issue structure.
General Insurance Corporation of India (GIC Re) is another listed company participating in the NSE share sale.
GIC Re holds around 4.07 crore NSE shares, equivalent to 1.64%, and is expected to offer up to around 1.07 crore shares in the OFS.
That puts GIC Re among the larger insurance-sector shareholders looking to monetise part of their NSE investment.
The NSE IPO also brings several state-owned insurers into focus.
The New India Assurance Company holds around 1.42% in NSE and plans to sell up to 1.05 crore shares. National Insurance Company and United India Insurance Company each hold around 1.42% and could sell up to 60 lakh shares apiece.
The Oriental Insurance Company also has around a 1.42% NSE stake and proposes to sell up to 49.57 lakh shares.
Meanwhile, ICICI Lombard General Insurance Company holds around 0.95% and could offer up to 23.5 lakh shares.
Industrial Finance Corporation of India (IFCI) is linked to the NSE ownership history, but investors need to be careful here.
IFCI was among the early subscribers to NSE shares. However, its current exposure is reflected primarily through entities such as Stock Holding Corporation of India Limited (SHCIL) rather than a large direct NSE holding in IFCI itself.
SHCIL holds around 4.44% of NSE and plans to sell up to 1.09 crore shares through the OFS.
There is an interesting twist. Life Insurance Corporation of India (LIC) remains the largest single shareholder in NSE with around 10.72%, but it is not participating in the IPO.
That means LIC will retain its entire NSE holding even as several other shareholders sell part of their stakes.
The NSE IPO is entirely an offer for sale, so the money raised will go to the stakeholders selling their stake rather than NSE itself.
For SBI, Bank of Baroda, GIC Re and the insurance companies, the key attraction is therefore the potential value unlocked from an investment held for years.