Two high-profile IPOs, one surprising common factor. What do the upcoming mega IPO such as NSE and the SBI Mutual Fund have in common? At first glance, they belong to completely different businesses. One runs India’s largest stock exchange, while the other manages one of the country’s biggest mutual fund houses.
Yet behind both issues sits a familiar name – State Bank of India.
But here is the interesting question: As these IPOs gather momentum, how much could SBI actually gain from them? Could the country’s largest lender emerge as one of the biggest beneficiaries of the current IPO revival?
As per the DRHPs filed by these companies, it is intriguing to note that SBI is not merely watching the IPO action from the sidelines. Through its holdings in both NSE and SBI Funds Management, the lender is positioned at the centre of two of the most closely tracked public offerings in the market today.
Let’s take a look at the shareholding details –
SBI stake in NSE IPO
The NSE IPO is structured entirely as an Offer for Sale (OFS). This means the exchange itself will not raise any fresh capital. Instead, existing shareholders will sell part of their holdings.
SBI features prominently among the largest shareholders that are set to offload stake. SBI will sell up to 2.47 crore shares through the public issue.
SBI’s NSE holding at a glance
| Particulars | Details |
| Shares being sold in IPO | 2.47 crore shares |
| SBI direct stake in NSE | 3.23% |
| Shares held directly | 7.98 crore shares |
| Cost of acquisition | Rs 0.80 per share |
| IPO structure | 100% Offer for Sale |
According to the DRHP, SBI acquired these shares at a weighted average cost of just Rs 0.80 per share. While the final IPO price has not yet been announced, The unlisted shares of NSE have seen price action in the Rs 1,350-2,260 range over the past year.
Apart from its direct holding, SBI also has indirect exposure through its group entities. SBI Capital Markets owns a 4.33% stake. Similarly, SBI Life Insurance owns another 0.33%.
SBI’s wider exposure to NSE
| Entity | Stake |
| State Bank of India | 3.23% |
| SBI Capital Markets | 4.33% |
| SBI Life Insurance | 0.33% |
| Total SBI Group Exposure | 7.89% |
Since the issue is entirely an OFS, the proceeds from the sale will go directly to SBI after deducting issue-related expenses and taxes.
SBI Funds Management IPO: A much larger opportunity?
While the NSE stake is attracting attention, SBI’s holding in SBI Funds Management could be an even bigger story.
The proposed SBI Mutual Fund IPO is expected to be worth around Rs 13,000 crore and is also structured entirely as an Offer for Sale. Here, SBI is the largest shareholder selling stake.
SBI Funds Management IPO: Key details
| Particulars | Details |
| Shares offered by SBI | 12.83 crore shares |
| SBI pre-IPO stake | 61.86% |
| Shares held by SBI | 126 crore shares |
| Cost of acquisition | Rs 0.15 per share |
| IPO structure | 100% Offer for Sale |
The most striking detail is SBI’s acquisition cost. According to the DRHP, the weighted average acquisition cost for these shares is only Rs 0.15 per share.
That means almost the entire sale proceeds, after adjusting for expenses and taxes, could translate into significant gains for the lender once the final IPO price is determined.
Even after selling shares in the IPO, SBI will continue to remain the promoter and largest shareholder of the asset management company.
Interestingly, the SBI Funds Management IPO has got the SEBI approval and all eyes are now on when the IPO would be launched formally and the price band that is set to be decided.
One bank, two major IPOs in focus
What makes the current IPO cycle particularly interesting is SBI’s presence on both sides of the market.
In the NSE IPO, it is monetising a long-held strategic investment in India’s largest stock exchange. In the SBI Funds Management IPO, it is partially unlocking value from one of the country’s largest asset management businesses while retaining control.
SBI’s exposure across both IPOs
| IPO | Shares Being Sold | Acquisition Cost |
| NSE IPO | 2.47 crore | Rs 0.80/share |
| SBI Mutual Fund IPO | 12.83 crore | Rs 0.15/share |
For investors tracking India’s primary market, it is worth watching that SBI’s role goes beyond being a banking giant. Through its stakes in both NSE and SBI Mutual Fund, this country’s largest lender is emerging as one of the biggest beneficiaries of the latest IPO wave.
However, it is important to note that the final earnings will depend on the eventual issue prices.
Disclaimer: Investment in the securities market involves risks. The details provided regarding the proposed IPOs of NSE and SBI Mutual Fund, including shareholdings, historical acquisition costs, and estimated issue sizes, are sourced from draft regulatory filings and preliminary market data for general informational purposes. This content does not constitute financial advice, an endorsement, or a solicitation to buy, sell, or hold any securities. Investors should independently review the final Red Herring Prospectus (RHP) and consult a SEBI-registered investment advisor before taking any financial decisions. This disclaimer has been generated using AI to support user well-being and responsible content consumption.