The National Stock Exchange of India's IPO is finally set to hit the Street next week. While the much-awaited offer's size has been slashed slightly, preventing it from grabbing the crown of India's biggest offer. Despite that, most selling shareholders are set to pocket multibagger gains as they capitalise on their decades-long investment in India's biggest stock exchange.
Who gains how much from NSE IPO? State Bank of India (SBI) could pocket ₹2,849 crore or a 2,23,025 per cent gain from NSE IPO's listing. The PSU lender had bought shares at a mere ₹0.8, according to data available in the red herring prospectus (RHP).
Now, with the upper end of the price band set at ₹1,785 apiece, SBI is looking to make a windfall on its investment. The New India Assurance Company is looking to pocket a 5,57,712 per cent return, making it the biggest beneficiary of the NSE IPO in percentage terms.
It had acquired the shares at ₹0.32 apiece. In absolute terms, the profit amounts to ₹1874 crore. Meanwhile, SBI Capital Market could earn 4,69,637 per cent return or a ₹1567 crore gain as it acquired shares at just ₹0.38 apiece. Stock Holding Corporation's gains stand at 3,87,943 per cent, with a gain of ₹1104 crore.
United India Insurance could see a 3,56,900 per cent upside or a ₹1,071 crore profit on its investment, while for Bank of Baroda the same stands at 3,30,456 per cent or ₹1372 crore. General Insurance Corporation stands to gain 33,835 per cent or ₹1,101 crore.
Canada Pension Plan Investment Board, MS Strategic and Aranda Investments together look to pocket ₹5,562 crore. (function(){function e(){window.addEventListener('message',function(e){if(e.data['datawrapper-height']!==void 0){var t=document.querySelectorAll('iframe');for(var n in e.data['datawrapper-height'])for(var r=0,i;i=t[r];r++)if(i.contentWindow===e.source){var a=e.data['datawrapper-height'][n]+'px';i.style.height=a}}})}e()})(); Together, these 10 shareholders are set to make a profit of ₹16,500 crore on their investment of ₹534 crore.
NSE IPO detailsNSE IPO is slated to open for bidding on September 17 and will remain available till Septmeber 21. While NSE reduced its IPO size by more than 15 per cent, it would still be the country's third-largest IPO. The company is looking to raise ₹22,567 crore at the upper end of the offer.
The exchange has reserved 50 per cent of the net offer for QIBs, 35 per cent for retail investors and the remaining 15 per cent for NIIs. According to a Reuters report, in the cash equity markets, NSE has about 95 per cent market share and in equity derivatives its share is 75 per cent, according to NSE disclosures.