NSE IPO: Indian Bank to sell 15 lakh shares via OFS; key details to know

Indian Bank shares are expected to hog the limelight on Thursday, September 10, as the state-run lender has proposed to sell up to 15 lakh equity shares of the National Stock Exchange of India (NSE) through an offer for sale (OFS) as part of NSE’s proposed IPO.

The proposed divestment represents 17.91% of Indian Bank’s existing shareholding in NSE and is subject to the requisite regulatory approvals.

The bank said it executed the consent letter for the proposed sale on September 9, 2026, and expects to complete the transaction by the end of September, on an indicative basis.

The sale is important for Indian Bank as it will monetise part of its holding in NSE ahead of the exchange’s much-awaited listing.

However, since this is an OFS, the proceeds from the share sale will go to the selling shareholder, Indian Bank, and not to NSE.

The bank also disclosed that it received ₹29.31 crore as dividend from NSE for FY2025-26.

Bank of Baroda details

Before Indian Bank, Bank of Baroda earlier this week said it had initiated the process to sell up to 76.90 lakh NSE shares, equivalent to around 35% of its stake in the exchange, through the proposed NSE IPO's offer-for-sale (OFS).

The shares were transferred to an escrow account on September 8, with the divestment expected to be completed by the end of September 2026. The sale will allow Bank of Baroda to unlock the value of its NSE holding, with the proceeds accruing to the bank as the IPO is an OFS.

The lender said it has received ₹76.90 crore in dividend from NSE for FY2025-26.

NSE IPO: What is the latest update

The size of the National Stock Exchange (NSE) IPO may shrink with the OFS likely to be cut to 5.2%-5.5%, from the 6% planned earlier, as some shareholders have backed out of the sale, PTI reported, quoting people familiar with the matter.

The reduced OFS could bring down the overall issue size to ₹25,000-₹27,000 crore, compared with the earlier estimate of ₹30,000 crore. At this size, NSE may fall short of becoming India's largest-ever public offering. Hyundai Motor India's IPO, at ₹27,870 crore, currently holds the record.

The reduction in the OFS size is understood to be driven by some shareholders choosing not to sell during the IPO, as they believe they could command a better valuation by selling their stake later, the PTI report added.

The NSE is also looking to make the issue more attractive for retail investors, with pricing being structured to provide greater participation and benefit to small investors in the OFS, they added.

The IPO price band is expected to be in the range of ₹1,700-₹1,785 per share, against an earlier estimated of ₹2,000 per share.

The NSE IPO is likely to open for public subscription on September 18 and close on September 22. The shares are likely to be listed on September 25. The listing is targeted before the 'Pitru Paksha' period that begins on September 26.