NSE IPO Sellers: Why Some Share Costs Are Below ₹1
Several shareholders selling shares in NSE's proposed IPO report weighted average acquisition costs below ₹1 per share. SBI's disclosed cost is ₹0.80, while New India Assurance, Oriental Insurance and National Insurance each report ₹0.32, according to the September 10, 2026 red herring prospectus.
These figures describe sellers' historical acquisition costs. They do not represent the price at which IPO applicants can buy NSE shares, the company's present value per share or a guaranteed return for an existing owner. Their main significance is the contrast between the cost histories of different shareholders.
Which NSE IPO sellers have acquisition costs below ₹1?
Annexure A on pages 623–624 lists each selling shareholder's maximum offered shares and weighted average cost of acquisition. Selected sub-rupee disclosures are set out below.
The table is a selection from the selling shareholder disclosures, rather than a list of every NSE shareholder. The RHP says the acquisition-cost information was certified by Manian & Rao through a certificate dated September 10, 2026.
Do all selling shareholders have similarly low costs?
No. Canada Pension Plan Investment Board reports a weighted average acquisition cost of ₹324.13 per share. Aranda Investments reports ₹62.38, MS Strategic reports ₹66.54 and Mahagony reports ₹564.84.
The RHP also lists individual selling shareholders with their own cost figures. This spread shows that there is no single historical entry price for NSE's ownership base.
Nor should the cost of a selected seller be used as a proxy for what all buyers in private transactions paid. The annexure reports shareholder-specific figures, with different acquisition histories reflected in the disclosed averages.
Why are acquisition cost and face value different?
NSE's equity shares have a face value of ₹1. Face value is the nominal amount attached to each share in its capital structure. Weighted average acquisition cost describes the seller's disclosed cost basis across the shares concerned.
The two measures answer different questions, so a cost below face value is not, by itself, evidence of an error in the prospectus. It also does not establish a new transaction price for the public offer.
NSE's share capital history includes a 4:1 bonus issue in November 2024. Four additional shares were allotted for every existing share. That history is relevant when comparing per-share figures across time, although the RHP does not provide a separate narrative attributing each seller's cost to a single event.
Can these costs be used to calculate IPO gains?
The supplied RHP leaves the offer price fields blank. It therefore does not contain the price needed to calculate a realised sale spread for an IPO seller.
Even where a sale price is known, subtracting the disclosed acquisition cost would describe only a gross per-share difference before relevant costs and taxes. It would not, on its own, establish an annualised investment return because that also requires the timing of cash flows.
The distinction is important for headlines about large gains. The prospectus supports reporting the cost figures and proposed quantities. It does not support inventing sale proceeds, after-tax gains or annualised returns from the cost table alone.
Does selling mean these owners are leaving NSE?
The offered shares represent only part of some sellers' disclosed holdings. SBI's maximum offer equals 20% of its pre-offer holding. Canada Pension Plan Investment Board's maximum offer is 30% of its disclosed holding.
Those comparisons are calculated from the RHP's shareholding and offer tables. They show why sale participation should not automatically be described as a full exit or a negative statement about the company.
NSE's acquisition-cost disclosures are useful for understanding who owns the exchange and how different their historical cost bases are. They do not set the IPO price. Keeping cost, face value, sale quantity and transaction price separate preserves the meaning of the unusually low figures.