NSE IPO: SBI, LIC, GIC RE among key listed stakeholders; details here

As the National Stock Exchange (NSE) looks to resolve its co-location and dark fibre cases with SEBI and secure approval for its long-awaited initial public offering (IPO), attention is now focused on its existing shareholders amid expectations of value unlocking.

While the structure of the issue will only become clear after the filing of the draft IPO papers, the exchange’s latest shareholding pattern for the March quarter highlights substantial investments by leading listed financial institutions, including State Bank of India (SBI), Life Insurance Corporation of India (LIC), General Insurance Corporation of India (GIC Re), and New India Assurance Company Limited.

Data showed 10 insurance companies together accounted for 19.22 per cent of NSE's stake as of March 31. This included LIC, which alone accounted for 10.72 per cent stake (2,65,275,000 shares) in NSE. 

NSE last traded at Rs 2,389 per share in the unlisted market, implying a market capitalisation of Rs 5,91,277 crore, according to InCred Money. Based on this valuation, LIC’s holding in the exchange is valued at approximately Rs 63,384 crore.

As of the latest data, State Bank of India (SBI), along with its unlisted subsidiary SBI Capital Markets, collectively held a 7.56 per cent stake in NSE. Of this, SBI directly owned 3.23 per cent, while SBI Capital Markets held 4.33 per cent.

General Insurance Corporation of India (GIC Re) owned 40,700,000 shares, translating to a 1.64 per cent stake in NSE. The New India Assurance Company Limited held a 1.42 per cent stake in NSE, as did the unlisted insurers National Insurance Company Limited and The Oriental Insurance Company Limited.

Meanwhile, Stock Holding Corporation of India Limited held 4.44 per cent stake in NSE. Individuals held 1.74 per cent 1.74 per cent stake. 

Foreign Direct Investments by Mahagony Limited (3.93 per cent), Crown Capital Limited (2.3 per cent), DVI Fund (Mauritius) Limited (1.83 per cent), TIMF Holdings (1.81 per cent), Canada Pension Plan Investment Board (1.6 per cent) and 43 others accounted for 21.70 per cent stake. Three FPIs including Aranda Investments (Mauritius) Pte Ltd (4.54 per cent) held 6.30 per cent stake in NSE, data showed.

NSE recently submitted two separate applications under Sebi’s settlement framework. If approved, this could help lift the regulatory uncertainty that has overshadowed the exchange’s long-delayed initial public offering (IPO).

During the May 7 earnings call, NSE MD & CEO Ashishkumar Chauhan confirmed the exchange had responded to SEBI's February 28 letter and formally requested the NOC required to initiate the IPO.