NSE IPO: Upto 5,58,000% gains! SBI, NICAL, Bank of Baroda, National Insurance to reap massive gains

NSE IPO: The much-awaited initial public offering (IPO) of the National Stock Exchange of India (NSE) is set to make several of its long-standing shareholders extraordinarily wealthy, with some investors standing to clock gains of over 5,57,800% (or 5,578 times) based on their original acquisition cost and the IPO’s upper price band.

The NSE IPO is entirely an offer-for-sale (OFS), allowing existing shareholders including SBI, Bank of Baroda, NIACL and other insurers to monetise their stakes at a steep premium to their acquisition cost.

The IPO of NSE is entirely an offer-for-sale (OFS) of up to 12,64,36,650 equity shares by its existing shareholders, who will amass of Rs 22,568 crore from NSE's maiden stake sale at the upper end of its price band of Rs 1,700-1,785. NSE's RHP suggests that a total of 23 investors, including 20 corporate and three individual shareholders are participating in the OFS.

However, key investors like the New India Assurance Company Ltd (NIACL), the Oriental Insurance Company and the National Insurance Company are reported to be biggest gainers. Their weighted average cost of acquisition (WACA) is Rs 0.32 per share. These three companies are cumulatively offloading 1,32,76,290 equity shares, bagging Rs 2,370 crore for their sale.

Other selling investors like SBI Capital Markets (WACA of Rs 0.38 apiece), Stock Holding Corporation of India (WACA of Rs 0.46 apiece), United India Insurance Company (WACA of Rs 0.50 apiece), Bank of Baroda (WACA of Rs 0.54 apiece) and State Bank of India (WACA of Rs 0.80 apiece) will make 2,230-4,700 times returns from NSE IPO.

However, institutional investors like Be-In Eight SRL, Mahogany, Canada Pension Plan Investment Board, Crown Capital, 2726247 Ontario Inc and ICICI Lombard General Insurance Company will make 73 per cent to 215 per cent returns from their OFS. However, an individual selling shareholder named Mahesh Gupta will sell up to 500 equity shares but make a loss as his WACA is 1,826.85 apiece.

Least heard, NSE was commanding a grey market premium of Rs 200-205 apiece, suggesting a listing gains of 11-12 per cent for the investors. The IPO of NSE will open for bidding on Thursday, September 17 and will close for subscription on Monday, September 21. The stock will be listed on BSE Ltd only on Thursday, September 24.