India’s mega listing is finally here. The awaited Draft Red Herring Prospectus (DRHP) of the National Stock Exchange of India (NSE) has been filed with the SEBI. The exchange is conducting an initial public offering (IPO) consisting entirely of an Offer for Sale (OFS) of up to 14.89 crore equity shares.
Based on the company’s total issued, subscribed, and paid-up equity share capital after the offer, which is 247.50 crore shares, the OFS represents a dilution of almost 6.02% of the total shares.
As per the data in the DRHP, State Bank of India is the largest selling shareholder, which will be offloading 2.48 crore shares. It was followed by MS Strategic (Mauritius), Canada Pension Plan Investment Board, Bank of Baroda, and 15 other selling shareholders.
Below is the detailed information regarding who is selling, the quantities they are offering, and the expected proceeds.
Who is selling and how much?
The OFS includes participation from 19 corporate entities and 4 individual shareholders.
| Corporate selling shareholders | |
| Selling shareholder | Equity shares offered |
| State Bank of India | 24,750,000 |
| MS Strategic (Mauritius) | 16,000,000 |
| Canada Pension Plan Investment Board | 11,874,060 |
| Aranda Investments (Mauritius) Pte | 11,246,336 |
| Bank of Baroda | 10,986,250 |
| Stock Holding Corporation of India | 10,890,000 |
| General Insurance Corporation of India | 10,658,000 |
| The New India Assurance Company | 10,500,000 |
| National Insurance Company | 6,000,000 |
| United India Insurance Company | 6,000,000 |
| Crown Capital | 5,871,093 |
| 2726247 Ontario Inc. | 5,401,286 |
| Mahagony | 5,000,000 |
| The Oriental Insurance Company | 4,957,000 |
| Indian Bank | 2,475,000 |
| ICICI Lombard General Insurance Company | 2,350,000 |
| TA Asia Pacific Acquisitions | 2,000,000 |
| Soach Global Strategic Holdings | 1,650,000 |
| Be-In Eight s.r.l. | 262,500 |
Individual selling shareholders
- Amit Kumar Lohia: Up to 25,000 shares.
- Rajiv Bolla: Up to 7,500 shares.
- Shaik Samdani Basha: Up to 1,000 shares.
- Mahesh Gupta: Up to 500 shares.
How much will they raise?
The exact total amount to be raised is not yet determined as of the date of the DRHP. The final amount will depend on the offer price, which will be decided by the company and selling shareholders in consultation with the Book Running Lead Managers through a book-building process.
It is to be noted that all proceeds from the offer will go to the selling shareholders in proportion to the shares they sell. The company itself will not receive any proceeds from this offer because there is no fresh issue of shares.
| Component | Details |
| Total no. of shares offered | Up to 14.89 crore |
| Type of issue | 100% Offer for Sale (OFS) |
| Face value per share | Rs 1 |
| Total amount to be raised | Not yet determined |
| Recipient of proceeds | All proceeds go to selling shareholders. No proceeds to NSE |