NSE IPO: PSUs come forward to participate in the Offer For Sale, sources say

NSE is likely to have received expressions of interest (EoIs) amounting to nearly 4–5% of its equity for the OFS segment, as per sources.

By Yash Jain

Public sector undertaking (PSUs) have stepped forward to participate in the offer-for-sale (OFS) portion of the much-waited initial public offering (IPO) of the National Stock Exchange (NSE), people in the know told CNBC-TV18.

The exchange is likely to have received expressions of interest (EoIs) amounting to nearly 4–5% of its equity for the OFS segment, as per sources.

The deadline for eligible shareholders to submit their EoIs was by 5pm on Monday, April 27. The OFS participation process was open to shareholders holding NSE shares for at least a year.

The NSE IPO is structured entirely as an OFS, implying that existing shareholders — including institutional investors — will offload part of their holdings, while the exchange itself will not raise fresh capital.

The issue is expected to involve a stake sale of around 4–4.5%, and could raise upwards of ₹20,000 crore, positioning it among the largest public offerings in India.

At present, India's state-run companies together hold 31% stake in NSE. These include LIC — the largest PSU stakeholder in the exchange with a 10.72% stake, the unlisted firm Stock Holding Corporation with a 4.44% stake, SBI Capital Markets with a 4.33% stake, India's largest lender SBI with a 3.23% stake and General Insurance Corporation with a 1.64% stake. Oriental Insurance, New India Assurance, National Insurance, Bank of Baroda, Indian Bank, United India Insurance, IDBI Trusteeship, SBI Life and PNB are among the other state-run companies that hold stake in NSE.

The IPO comes at a time when the NSE is close to resolving long-pending regulatory issues, with recent developments indicating progress toward settlement of legacy cases — one of the major hurdles that had delayed its listing plans for years.

With the EoI process now concluded, the focus will shift to the next steps, including finalisation of the OFS structure, filing of the draft red herring prospectus (DRHP), and eventual launch timelines.

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