NSE IPO: Government Nudges LIC, SBI, Other PSUs For Stake Sale Under OFS

The government is in dialogue with public sector companies to participate in the offer for sale of the upcoming initial public offering of the National Stock Exchange of India Ltd., sources told NDTV Profit on Friday. Currently nearly one-third of NSE's equity is owned by PSU shareholders.

The move comes ahead of NSE's Request for Proposal deadline of April 27. A majority of PSU shareholders are in the process of making submission for stake dilution, sources said.

Life Insurance Corp. is the largest PSU shareholder of NSE at 10.72%, followed by Stock Holding Corp (4.44%), SBI Capital Markets (4.33%) and State Bank of India (3.23%).

The Securities and Exchange Board of India mandates a minimum dilution of 2.5% in public offers of Rs 10,000 crore and above.

The NSE is looking at 4-4.5% dilution for the IPO. The draft IPO prospectus is expected by the end of June. The IPO will have no fresh issue component and involve about 4% or more of its equity on sale. The bourse has around 191,000 shareholders.

Responding to an NDTV Profit query, the NSE stated, "Pursuant to the NOC issued by SEBI, the board approved an initial public offering of the Company through an offer for sale on Feb. 6, 2026. No further comments at this stage."

Shareholders who participate in the OFS will not be allowed to purchase shares in the IPO as an investor.

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