NSE OFS: PSU Shareholders To Sell Rs 15,500 Crore, Exchange Eyes 4-5% Equity Dilution

Public sector shareholders of the National Stock Exchange are preparing to offload shares worth about Rs 15,500 crore as part of the exchange's proposed offer for sale, forming the bulk of a transaction that could see 4–5% equity dilution at NSE.

PSUs together hold about 31% of the exchange. Sources said PSUs were being pushed to sell roughly 10% of their holdings in the OFS, implying a dilution of around 3.1% of NSE's equity from PSU shareholders alone.

LIC, the largest shareholder in NSE, is expected to be the biggest contributor to the OFS, with stake sales estimated at about Rs 5,300 crore. This would translate into slightly over 1% equity dilution at the exchange level. Stock Holding Corp. may sell shares worth nearly Rs 2,200 crore, implying about 0.44% dilution.

The SBI group, including its affiliates, is expected to sell shares worth around Rs 3,700 crore, corresponding to roughly 0.75% equity dilution. PSU insurers, taken together, may offload shares worth close to Rs 4,000 crore, adding another 0.8% dilution.

Separately, NSE is expected to tap institutional shareholders to scale up the OFS to its targeted size. Institutional selling is pegged at around Rs 5,000-7,500 crore, taking the overall OFS to Rs 20,000-23,000 crore. At this level, total equity dilution is expected to be in the range of 4-5%.

Investors likely to participate in the OFS include New India Assurance, GIC Re, Temasek and ChrysCapital, according to people familiar with the matter.