NSE IPO 2026: SBI, BOB top sellers as DRHP filed

Why NSE’s DRHP filing is back in focus

National Stock Exchange of India (NSE) has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO). The filing is a key step in a listing process that has been discussed for years. Multiple listed financial institutions and insurers hold stakes in the exchange, which is why their shares were being watched closely. Reports said the stocks of State Bank of India (SBI), Bank of Baroda (BOB), General Insurance Corporation of India (GIC Re) and The New India Assurance Company were in focus after the draft papers highlighted them among the selling shareholders.

The IPO is structured as an offer-for-sale (OFS), meaning existing shareholders will sell shares and NSE will not receive proceeds from the issue. According to the draft papers and related reporting, shareholders may sell about 6 percent of NSE’s equity through the IPO. Estimates cited in coverage suggested the IPO could raise more than Rs 30,000 crore, which would make it the largest IPO in India by that measure.

IPO structure: a pure offer-for-sale

The issue is entirely an OFS of up to 148,905,525 equity shares. This corresponds to nearly 6 percent of NSE’s paid-up capital, as described in the DRHP coverage. The shares have a face value of Rs 1 per share. Since the transaction is structured as an OFS, the money raised from the share sale will go to the selling shareholders rather than to NSE.

Market participants are expected to track details in the DRHP such as the final OFS size, the list of selling shareholders, and the updated shareholding structure. The presence of multiple public sector financial institutions and general insurers among the sellers has drawn attention because their NSE stakes have been held for decades.

Who is selling: SBI, BOB and insurers feature prominently

The DRHP names 10 selling shareholders: State Bank of India, MS Strategic (Mauritius), Canada Pension Plan Investment Board, Aranda Investments (Mauritius), Bank of Baroda, Stock Holding Corporation of India, General Insurance Corporation of India, The New India Assurance Company, National Insurance Limited and United India Insurance Company.

Moneycontrol, citing merchant banking sources, reported that SBI is likely to emerge as the largest selling shareholder, offering up to 24.75 million shares. The same set of reports indicated other large proposed sellers, including Aranda Investments (Mauritius) at up to 11.24 million shares. Bank of Baroda and Stock Holding Corporation of India Ltd. were expected to offer around 11 million shares each.

GIC Re may sell up to 10.65 million shares, and The New India Assurance may sell up to 10.5 million shares. National Insurance Company and United India Insurance Company were each likely to divest around 6 million shares.

LIC’s position: largest shareholder, not a seller

Life Insurance Corporation of India (LIC) was reported as NSE’s largest shareholder as of March 31, 2026. LIC holds 26.53 crore equity shares, or a 10.72 percent stake, according to the figures cited. Multiple reports said LIC is not expected to dilute its stake in the IPO.

The IPO has been described as a potential value-unlocking opportunity for shareholders in the future, and LIC’s decision not to sell has been highlighted because of the size of its holding. The DRHP and related reporting make the broader point that the OFS will be driven by other institutional holders, including banks and general insurers.

SBI group shareholding and expected sale size

As of March 31, 2026, SBI held 7.98 crore equity shares, or a 3.23 percent stake. SBI Capital Markets owned 10.72 crore equity shares, or a 4.33 percent stake. Together, the SBI group was described as the second largest shareholder at about 7.5 percent.

In the proposed sale, SBI is expected to be among the largest sellers. Reporting said SBI may offload up to 24.75 million shares in the IPO. The transaction is being watched because it would translate a long-held, non-core financial investment into realised value through the OFS.

General insurers’ long-held stakes and headline returns

NSE’s draft IPO papers also highlighted the magnitude of returns for some long-term shareholders. Two non-life insurance companies, The New India Assurance and National Insurance, were cited as being on track to make a 6,875-time return in the IPO. Their cost of acquisition was stated as 32 paise per share, from purchases made during NSE’s formative days.

Coverage referenced an expected IPO price of Rs 2,200 per share to illustrate potential returns for early investors. On the same expected price, SBI was described as potentially making a 2,750-time return, given that it acquired NSE shares in the early 1990s at an average price of 80 paise.

Other disclosed holdings: SHCIL and GIC Re

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. The same set of figures noted that GIC held an additional 4.07 crore equity shares, or a 1.64 percent stake.

Beyond the key sellers, other domestic institutions were also reported to own stakes in NSE. Names cited included 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.

Market moves: listed proxies react to listing expectations

Ahead of the DRHP filing and on expectations of the IPO step, shares of IFCI, New India Assurance and LIC rose up to 8 percent on Wednesday, according to the reports. Bank of Baroda shares were trading over 2 percent higher in the same context.

Separately, the initial summary of the development said shares of SBI, BOB, GIC Re and The New India Assurance would be in focus on Thursday because they were among the selling shareholders. The focus reflects how the OFS links NSE’s proposed listing to potential monetisation for shareholders that are already listed on Indian exchanges.

Key facts table: OFS size and proposed seller quantities

Shareholding snapshot table: disclosed stakes as of March 31, 2026

Why the DRHP matters for investors tracking banks and insurers

The DRHP filing matters because it makes the long-awaited listing process more concrete and clarifies which shareholders plan to sell. For listed institutions, the proposed sale quantities help investors map how much stake could be monetised in the IPO. The fact that the issue is a pure OFS also sets expectations that the economic benefit accrues directly to the selling shareholders.

At the same time, LIC’s decision not to sell, despite being the largest shareholder as of March 2026, is a key detail investors will track through subsequent disclosures. Reports also pointed to investor interest in “listed proxies” that hold NSE shares, especially given commentary around a potential 2026 listing and a possible Rs 5-6 lakh crore valuation range cited in market chatter.

Conclusion

NSE’s DRHP filing with SEBI outlines a pure OFS of up to 14.89 crore shares, with SBI, Bank of Baroda and multiple PSU general insurers among the 10 selling shareholders. LIC remains NSE’s largest shareholder at 10.72 percent as of March 31, 2026 and is not expected to dilute its holding. The next milestones for the market will be closer scrutiny of the DRHP and subsequent steps in the IPO process, including final OFS details and timelines as disclosures evolve.