NSE IPO 2026: DRHP filing nears, SBI seen top seller

DRHP filing expected as NSE listing plan advances

The National Stock Exchange of India (NSE) is expected to take a key step toward its long-awaited listing by filing its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI). Reports citing people familiar with the process said the DRHP could be filed on Wednesday, June 17, 2026. Some reports also indicated the filing could happen by Thursday, June 19, 2026. The development matters because it moves NSE closer to an initial public offering that has been discussed for years.

The proposed IPO is expected to be structured largely as an offer for sale (OFS), where existing shareholders sell shares rather than the company issuing new ones. According to reporting, shareholders may sell about 6 percent of NSE’s equity through the IPO. Market participants will watch the DRHP closely for the final OFS size, the list of selling shareholders, and the updated shareholding structure.

IPO structure: offer for sale led by shareholders

Based on information cited from merchant banking sources, the IPO is expected to be an OFS. That means NSE’s existing shareholders would offer shares to the public, and the proceeds would go to those selling shareholders. One report pegged the potential IPO size at around Rs 30,000 crore, while emphasising that the OFS portion could be roughly 6 percent of equity.

The OFS structure is drawing attention because several public sector financial institutions and insurers hold meaningful stakes in NSE. A key highlight in the proposed structure, according to sources cited in the reports, is that Life Insurance Corporation of India (LIC) is not expected to sell its shares in the IPO, despite being one of the largest shareholders.

NSE shareholding: exchange owned entirely by non-promoters

NSE’s entire shareholding belongs to non-promoter shareholders, according to the information in the reports. As per the shareholding pattern filed as of March 31, 2026, public shareholders own 159.39 crore equity shares, representing 64.40 percent stake. Non-public, non-promoter shareholders own 88.11 crore equity shares, representing 35.60 percent stake.

The shareholder list includes domestic institutions, insurers, banks, overseas funds, sovereign wealth funds, and individual investors. The breadth of the shareholder base is also reflected in the presence of more than 1.85 lakh retail investors, who held 30.75 crore equity shares or 12.42 percent stake as of the same date.

LIC stake: largest shareholder but not expected to sell

LIC holds 26.53 crore equity shares, or a 10.72 percent stake in NSE, as of March 31, 2026. Multiple reports said LIC is unlikely to sell any stake in the OFS. This is significant because LIC’s participation could have been a major component of the OFS due to its large holding.

The reports also noted additional stakes held by other government-linked entities. General Insurance Corporation of India (GIC Re) held an additional 4.07 crore equity shares, or a 1.64 percent stake. The New India Assurance Company Ltd, National Insurance Company, and The Oriental Insurance Company each owned 3.52 crore equity shares, or 1.42 percent stake in NSE as of FY26.

SBI and group entities: meaningful holding and likely large sale

State Bank of India (SBI) and its group entities are notable shareholders. SBI held 7.98 crore equity shares, or 3.23 percent stake, while SBI Capital Markets owned 10.72 crore equity shares, or 4.33 percent stake.

Moneycontrol, citing merchant banking sources, reported that SBI is likely to emerge as the largest selling shareholder, offering up to 24.75 million shares in the IPO. Other public sector-linked sellers are also expected to participate, according to people familiar with the development.

Other major holders: SHCIL, Temasek arm, overseas funds

Stock Holding Corporation of India (SHCIL), whose shareholders include IFCI Ltd, LIC and GIC Re, owns 11 crore equity shares or a 4.44 percent stake in NSE. Another large shareholder highlighted is Temasek’s Aranda Investments (Mauritius), which held nearly 11.24 crore equity shares or 4.54 percent stake as of Q4FY26.

Select overseas funds and sovereign wealth funds, including Mahogany, Crown Capital, DVI Fund (Mauritius), TIMF Holdings, TA Asia Pacific Acquisition, Canada Pension Plan Investment Board (CPPIB) and others, cumulatively own 65.97 crore equity shares, or a 26.66 percent stake. The DRHP is expected to clarify which of these funds will participate in the OFS and the exact quantities.

Individual and retail ownership: Damani, Premji Invest, and 1.85 lakh investors

Among individual investors, ace investor Radhakishan Damani owns 3.90 crore equity shares, or 1.58 percent stake in NSE. Azeem Premji’s investment arm, Premji Invest, owned 5.89 crore equity shares, or 2.38 percent stake, through PI Opportunities Fund-I.

Retail participation is also material in absolute terms. More than 1.85 lakh retail investors held 30.75 crore equity shares, or 12.42 percent stake in NSE as of March 31, 2026. This dispersed ownership can influence how selling decisions are distributed across holders in an OFS-led IPO.

Proposed sellers and share quantities flagged in reports

Reports named a set of likely sellers and indicated potential sale quantities. These figures are expected to be formalised in the DRHP once filed.

Separately, coverage also listed a broader set of expected selling shareholders, including Indian Bank and Oriental Bank, alongside PSU-side names such as SBI, New India Assurance, Bank of Baroda, United India Insurance, SHCIL, National Insurance and GIC Re.

Key shareholder snapshot as of March 31, 2026

The shareholding details cited in the reports provide a clearer view of who owns NSE ahead of the potential listing.

Other domestic institutions such as Tata Investment Corporation, JM Financial, BSE Ltd, Multi Commodity Exchange of India (MCX), HDFC Bank, Canara Bank, Punjab National Bank, Bank of Baroda and Union Bank of India were also reported to own stakes in NSE.

Market impact: what investors will track next

The filing of the DRHP, if completed this week as reported, would be a key regulatory milestone for the IPO process. For market participants, the primary watchpoints are the final list of selling shareholders, the final OFS percentage (reported as about 6 percent), and the confirmed quantities to be sold by large holders like SBI.

Another market-relevant detail is the reported stance of LIC. LIC is a major shareholder at 10.72 percent, yet reports said it is unlikely to sell shares. That can shift the OFS burden toward other institutions and funds that choose to monetize part of their holdings.

Why the DRHP matters for the IPO timeline

The DRHP is expected to consolidate essential disclosures, including shareholding, risk factors, and the mechanics of the OFS. Reports said the document has been cleared by investors and is likely to be filed soon. A spokesperson of one of the book running lead managers was cited as saying NSE is likely to file the DRHP by Wednesday.

Once the DRHP is filed, the next steps will depend on SEBI’s review process and the timeline set out in subsequent updates by the exchange and the lead managers.

Conclusion

NSE’s expected DRHP filing with SEBI in mid-June 2026 is the clearest signal yet that the exchange’s IPO is moving forward. Reports indicate the issue may be an OFS of about 6 percent equity, with SBI among the largest potential sellers and LIC unlikely to participate as a seller. The DRHP, once filed, should provide the definitive list of selling shareholders, the exact offer size, and the timeline for the next stage of the listing process.