NSE IPO price band: SBI, Bank of Baroda, GIC Re, New India Assurance shares in focus after fresh report; key details

Shares of State Bank of India (SBI), Bank of Baroda, GIC Re and New India Assurance are in focus today after a Bloomberg report said that National Stock Exchange of India Ltd has lowered the price range for its initial public offering (IPO) to Rs 1,700 from Rs 1,785 apiece. The lowering of the price band implies that stake sale by these listed players will fetch lesser proceeds than earlier.

SBI, Bank of Baroda, GIC Re and New India Assurance are the listed entities that will sell their stake in the NSE's upcoming IPO. SBI may sell around 2.48 crore shares of NSE during the IPO.

Bank of Baroda, another listed player, is expected to sell 1.10 crore shares in the stake sale.  GIC RE also plans to sell around 1.07 crore shares in the IPO.

Earlier, reports said that NSE IPO could involve sale of around 14.89 crore shares, representing roughly 6% of equity stake, through the IPO. The issue is expected to be entirely an offer for sale, or OFS.

IPO size may be cut 

But the Bloomberg report said that the exchange may cut the stake being offered to about 5.5% of the total equity capital from the originally planned 6% after some shareholders have backed out of selling their stakes at the lower price.

Another listed player IFCI has indirect exposure to NSE through Stock Holding Corporation of India. LIC, NSE's largest shareholder, is expected to retain its stake.

The Bloomberg report said that the stake sale of 5.5% would raise about Rs 24,300 crore and value NSE at as much as Rs 4.42 lakh crore, compared with a previously targeted valuation of as much as Rs 5.26 lakh crore.

The reduction in the deal size comes amid growing concerns over the India's primary market’s capacity to absorb several large transactions simultaneously. The pressure could intensify as Jio Platforms also moves closer to a potential initial public offering that could rank among India’s largest IPOs.

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