NSE IPO: 10 shareholders set to make Rs 16,500 crore from decades-old investments

The National Stock Exchange of India (NSE) is set to launch its much-awaited initial public offering next week, giving some of its long-standing shareholders an opportunity to cash in on investments made decades ago.

While the exchange has trimmed the size of its IPO, the offer is still expected to rank among India's biggest public issues. For the 10 selling shareholders, however, the listing could mean exceptionally large gains compared with their original investment costs.

SBI, New India Assurance among biggest gainers

State Bank of India (SBI) stands to make the largest profit in absolute terms among the selling shareholders. The lender acquired NSE shares at Rs 0.80 apiece and could make a gain of around Rs 2,849 crore based on the IPO's upper price band of Rs 1,785.

New India Assurance, meanwhile, has the highest percentage return among the shareholders listed in the IPO documents. Having acquired its NSE shares at just Rs 0.32 apiece, the insurer could see a return of 5,57,713 per cent, translating into a gain of about Rs 1,874 crore.

SBI Capital Markets could earn around Rs 1,567 crore, representing a 4,69,637 per cent return, after acquiring its shares at Rs 0.38 apiece.

Stock Holding Corporation of India could make a gain of about Rs 1,104 crore, while United India Insurance could earn Rs 1,071 crore. Their respective returns stand at 3,87,943 per cent and 3,56,900 per cent.

Bank of Baroda is also set for a substantial windfall, with a potential gain of Rs 1,372 crore and a return of 3,30,456 per cent. General Insurance Corporation could make around Rs 1,101 crore, with a return of 33,835 per cent.

Three foreign investors add to gains

Canada Pension Plan Investment Board, MS Strategic and Aranda Investments are together expected to make gains of around Rs 5,562 crore.

Overall, the 10 shareholders are set to make around Rs 16,500 crore from their NSE holdings, compared with an original investment of about Rs 534 crore.

NSE IPO to open on September 17

The NSE IPO will open for subscription on September 17 and close on September 21. After reducing the offer size by more than 15 per cent, the exchange is looking to raise Rs 22,567 crore at the upper end of the price band.

Half of the net issue has been reserved for qualified institutional buyers, while retail investors will get 35 per cent and non-institutional investors the remaining 15 per cent.

NSE has about 95 per cent of the cash equity market and around 75 per cent of the equity derivatives market, according to its disclosures.