NSE IPO: Why SBI, Bank of Baroda, GIC RE, LIC, IFCI, Tata Investment shares are in focus today

Shares of State Bank of India (SBI), Bank of Baroda (BOB), General Insurance Corporation of India (GIC RE) and The New India Assurance Company Ltd will be in focus on Thursday after draft papers filed by the National Stock Exchange (NSE) with market regulator SEBI showed that they are among top 10 selling shareholders in the exchange's proposed initial public offering (IPO). IFCI, which owned 52.86 per cent stake in selling shareholder Stockholding Corporation of India, will also be in focus today.  

Shares of Life Insurance Corporation of India (LIC) are also expected to remain in focus, even though LIC is not among the selling shareholders in the proposed offer. LIC is the largest shareholder in NSE, holding 10.72 per cent, or 26,52,75,000 shares, and the IPO is seen as opening up a value-unlocking opportunity for the insurer in future.

SBI is looking to offload 2,47,50,000 equity shares, while BOB intends to sell up to 1,09,86,250 shares. GIC RE plans to offload up to 1,06,58,000 shares, while The New India Assurance Company Ltd is looking to sell up to 1,05,00,000 shares. Stock Holding Corporation of India Limited will be selling up to 10,890,000 shares.

Data showed SBI held 7,98,47,050 shares or 3.23 per cent stake in NSE so far. Besides, SBI Capital Markets Limited, an associate of SBI, held 10,72,50,000 shares or 4.33 per cent stake in NSE. The New India Assurance Company Ltd, on the other hand, owned 3,52,00,000 shares or 1.42 per cent stake in the largest stock exchange.According to the draft papers, the NSE IPO will be an offer for sale (OFS) of up to 14.89 crore shares with a face value of Rs 1 each, which will account for nearly 6 per cent of paid-up capital of NSE.

Other selling shareholders include MS Strategic (Mauritius) Ltd, Canada Pension Plan Investment Board, Aranda Investments (Mauritius) Pte Ltd, National Insurance Limited and United India Insurance Company Limited.

The offer will be made through the book-building process, wherein not more than 50 per cent of the net offer will be allocated to qualified institutional buyers (QIBs), and not less than 15 per cent and 35 per cent of the net offer will be assigned to non-institutional bidders and retail bidders, respectively. 

Among listed companies, HDFC Life Insurance Company Limited held a 0.5 per cent stake, Indian Bank owned a 0.34 per cent stake, SBI Life Insurance Co Ltd held a 0.33 per cent stake, Tata Investment Corporation Ltd owned a 0.20 per cent stake, Balkrishna Industries held a 0.13 per cent stake, and Punjab National Bank owned a 0.11 per cent stake.

Kotak Mahindra Capital Company, JM Financial Ltd, Morgan Stanley India Company Private Limited, Citi Global Markets India Private Limited, HSBC Securities & Capital Markets India Private Limited, JP Morgan India Private Limited, SBI Capital Markets Limited, Anand Rathi Advisors Limited, Avendus Capital Private Limited, Axis Capital Limited, DAM Capital Advisors Limited, Equirus Capital Limited, HDFC Bank Limited, ICICI Securities Limited, IDBI Capital Markets & Securities Limited, IIFL Capital Services Limited, Motilal Oswal Investment Advisors Limited, Nuvama Wealth Management Limited, Pantomath Capital Advisors Private Limited and 360 ONE WAM.

MUFG Intime India Private Limited is the registrar to the issue.