NSE IPO could unlock ₹24,000 crore for top 10 shareholders; SBI may fetch ₹4,950 crore

When the National Stock Exchange of India (NSE) finally rings the opening bell as a listed company, it won't just mark the end of a decade-long wait for India's largest stock exchange. It will also unlock a multi-thousand-crore windfall for its existing shareholders, including some of the country's biggest banks, insurers and global investors.

On Tuesday evening, NSE finally filed its draft red herring prospectus (DRHP) with market regulator Sebi, bringing an end to years of uncertainty surrounding its listing plans. The proposed IPO comprises an entirely offer for sale (OFS) of 14.89 crore shares, with no fresh issue component. As a result, the exchange will not receive any proceeds from the offering; instead, the funds raised will go directly to existing shareholders who are partially monetising their investments.

At NSE's current unlisted market price of around ₹2,000 per share, the IPO is estimated to be worth nearly ₹30,000 crore, which would make it one of the largest public offerings in Indian corporate history, surpassing the ₹27,000-crore IPO of Hyundai Motor India in 2024.

Who wins big in the NSE IPO?

The biggest beneficiary is likely to be State Bank of India (SBI), the largest selling shareholder in the issue. The state-owned lender plans to offload 2.47 crore shares, translating into estimated proceeds of nearly ₹4,950 crore at current unlisted market prices. What makes the sale particularly noteworthy is SBI's weighted average acquisition cost of just 80 paise per share, highlighting the extraordinary value creation generated by NSE over the years.

Mauritius-based MS Strategic is another major gainer, with its proposed sale of 1.6 crore shares potentially fetching around ₹3,200 crore. Canadian pension giant CPPIB could realise approximately ₹2,375 crore, while Aranda Investments is set to monetise shares worth nearly ₹2,250 crore.

Several domestic financial institutions that backed NSE in its early years are also poised for substantial gains. Bank of Baroda and Stock Holding Corporation of India are expected to unlock more than ₹2,100 crore each through the IPO. Notably, both entities acquired their holdings at less than ₹1 per share.

Public sector insurers are also in line for a sizeable payday. General Insurance Corporation of India (GIC Re) and New India Assurance could each realise more than ₹2,100 crore from their stake sales, while National Insurance Company and United India Insurance Company are expected to generate around ₹1,200 crore each.

Collectively, the top 10 selling shareholders could pocket nearly ₹24,000 crore based on NSE's prevailing unlisted valuation. The figures underscore the scale of wealth creation achieved by one of India's most valuable unlisted companies.

What makes the story even more remarkable is that many of these investors acquired their stakes decades ago at prices measured in paise rather than rupees. Today, with NSE commanding an estimated valuation of around ₹5 lakh crore in the unlisted market, those early investments have turned into some of the most successful long-term bets in India's financial sector.

Largest shareholder LIC chooses to opt out

Not everyone, however, is cashing out. Life Insurance Corporation of India (LIC), the single largest shareholder in NSE with a 10.72% stake, has chosen not to participate in the offer-for-sale. Its decision signals confidence in the exchange's long-term growth prospects even as several other investors monetise part of their holdings.

The listing comes at a time when NSE sits at the heart of India's rapidly expanding capital markets ecosystem. The exchange today serves over 129 million registered investors and has a presence across more than 99% of the country's postal codes, reflecting the deepening penetration of equity investing beyond major cities. According to the DRHP, NSE's unique registered investor base grew at a compounded annual growth rate (CAGR) of 26.9%, rising from 30.87 million in March 2020 to 129.1 million by March 2026. The exchange also remains India's dominant trading platform and the world's largest derivatives exchange by contracts traded.

The IPO will be conducted through the book-building process, with up to 50% of the net offer reserved for qualified institutional buyers (QIBs), at least 15% allocated to non-institutional investors (NIIs), and a minimum 35% earmarked for retail investors. Additionally, up to 5% of the post-offer paid-up capital has been reserved for eligible employees.

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