NSE IPO countdown begins: SBI, IFCI, GIC Re, Bank of Baroda shares in focus after SEBI nod

Shares of State Bank of India (SBI), New India Assurance (NIACL), Bank of Baroda, GIC Re and IFCI are likely to remain in focus on Monday, September 7, as SEBI has approved the National Stock Exchange’s (NSE) much-awaited IPO.

The proposed ₹30,000 crore issue is entirely an offer-for-sale (OFS), allowing existing shareholders to monetise their holdings.

SBI, the largest listed selling shareholder, plans to sell around 2.47 crore NSE shares, while NIACL and GIC Re are expected to offload nearly 1.05 crore and 1.1 crore shares, respectively.

Bank of Baroda is also set to sell up to around 1.1 crore shares.

Meanwhile, IFCI has indirect exposure to NSE through its 52.8% stake in Stock Holding Corporation of India, which owns around 4.4% in NSE.

The initial public offering (IPO) could therefore unlock significant value for these shareholders, with the impact particularly relevant for SBI and the PSU insurers given their very low acquisition costs for the NSE stake.

Key details

The Securities and Exchange Board of India (SEBI) issued an observation letter, effectively a clearance to the world's largest derivatives exchange to proceed with the IPO, according to an update on the regulator's website on Friday.

NSE IPO: India's largest till date?

The NSE's offering of 14.89 crore shares will compete alongside Jio Platforms Ltd, billionaire Mukesh Ambani-led conglomerate's digital services arm, for the biggest-ever IPO tag.

Jio's offering is estimated to be about ₹37,700 crore, but its timing has not yet been announced.

The NSE IPO will surpass Hyundai Motor India's ₹27,858.75 crore listing in 2024 as well as LIC of India's ₹20,557.23 crore offering in 2022.

It will also dwarf Paytm's (One97 Communications) ₹18,300 crore (2021), Tata Capital's ₹15,511.87 crore (2025) and Coal India's ₹15,200 crore (2010) listing.

The exchange is expected to announce the IPO price band and other key details next week.

The public issue is likely to be launched on September 15 with the exchange targeting a listing on September 24-25, a PTI report said, quoting sources.

The listing is targeted before the Pitru Paksha period begins on September 26.

The IPO, which will see light after nearly a decade of regulatory delays, will place NSE among India's 10 most valuable companies by market capitalisation.

NSE Q1 FY27 earnings

National Stock Exchange of India (NSE) reported a 7% rise in its consolidated profit after tax (PAT) to ₹3,120 crore for the June quarter (Q1 FY27), driven by higher operating income.

The IPO-bound exchange earned a PAT of ₹2,924 crore in the corresponding quarter of the previous fiscal.

Its total income increased 9% year-on-year (YoY) to ₹5,252 crore in the April-June quarter of FY27 from ₹4,798 crore logged a year ago, the bourse said in a statement.

Its revenue from transaction charges, the exchange's largest income source, rose to ₹3,623 crore during the quarter from ₹3,154 crore in the year-ago period.

Further, revenue from data connectivity charges stood at ₹258 crore, while operating investment income came in at ₹234 crore. Revenue from data feed and terminal services was ₹150 crore.

On the expenditure front, total expenses increased to $1,129 crore in the first quarter of FY27 from ₹1,053 crore seen in the corresponding period of the previous fiscal.

During the quarter, NSE contributed ₹20,579 crore to the exchequer, including collections and payments. This comprised Securities Transaction Tax/Commodities Transaction Tax (STT/CTT) of ₹18,313 crore, stamp duty of ₹980 crore, GST of ₹657 crore, income tax of ₹373 crore and SEBI fees of ₹256 crore.

Of the total STT/CTT collections, the equity derivatives segment accounted for 57%, followed by the cash market delivery-based segment at 37% and the cash market intraday segment at 6%.