The proposed initial public offering of the National Stock Exchange of India has been scaled down at the red herring prospectus stage, with several existing shareholders reducing the number of shares they plan to sell. A new stakeholder, SBI Capital Markets Limited (SS), has also been added, while one shareholder named in the draft prospectus has withdrawn from the offer.
The NSE IPO remains entirely an offer for sale, meaning the exchange itself will not receive any proceeds from the shares being sold by existing shareholders. The issue opens on September 17 and the price band for India’s second largest issue has been fixed at Rs 1,700-1,785 per share.
| Key issue detail | Details |
| IPO opening date | September 17, 2026 |
| Price band | ₹1,700–₹1,785 per share |
| Offer size | Up to 126,436,650 equity shares |
| Issue type | 100% Offer for Sale (OFS) |
| Employee reservation | Up to ₹70 crore within the overall issue |
The RHP dated September 10, 2026 proposes an offer of up to 126,436,650 equity shares of face value Rs 1 each. The offer also includes an employee reservation portion of up to Rs 700 million within the overall issue.
Issue size comes down by nearly Rs 4,000 crore
The reduction in the number of shares offered by several shareholders has brought down the indicative size of the NSE IPO substantially compared with the DRHP.
At the lower end of the indicative price band of Rs 1,700, the maximum offer size at the DRHP stage was about Rs 25,313.94 crore. At the RHP stage, the corresponding figure is about Rs 21,494.23 crore.
At Rs 1,785, the upper end of the indicative price band used for comparison, the DRHP-stage offer size was about Rs 26,579.64 crore. The RHP-stage figure is about Rs 22,568.94 crore.
That translates into a reduction of about Rs 3,819.71 crore at the lower end and about Rs 4,010.70 crore at the upper end.
The change is primarily linked to revisions in the proposed share sales by a number of existing shareholders.
SBI cuts proposed sale by nearly 8.8 million shares
State Bank of India has reduced its proposed sale from 24.75 million shares in the DRHP to 15.97 million shares in the RHP.
MS Strategic (Mauritius) Limited has cut its proposed sale from 16 million shares to 11 million shares.
Bank of Baroda has reduced its proposed offer from 10.99 million shares to 7.69 million shares.
Stock Holding Corporation of India Limited has lowered its proposed sale from 10.89 million shares to 6.19 million shares, while General Insurance Corporation of India has reduced its proposed sale from 10.66 million shares to 6.19 million shares.
National Insurance Company Limited has cut its proposed sale from 6 million shares to 4 million shares. Mahagony Limited has reduced its offer from 5 million shares to 3 million shares.
Indian Bank has also trimmed its proposed sale, from 2.48 million shares in the DRHP to 1.50 million shares in the RHP.
The prospectus does not, by itself, establish a common reason for these individual reductions.
SBI Capital Markets added as a selling shareholder
The RHP introduces SBI Capital Markets Limited (SS) as a selling shareholder, with an offer of up to 8,780,590 equity shares.
The addition of SBI Capital Markets partly changes the seller mix even as several existing shareholders have reduced their proposed sales.
The RHP also specifically states that the book running lead managers will not charge a fee on the shares being sold by SBI Capital Markets and will not act as underwriters for those shares.
Amit Kumar Lohia withdraws from the offer
Amit Kumar Lohia, who had proposed to sell up to 25,000 shares at the DRHP stage, no longer appears as a selling shareholder in the RHP.
The RHP records that Lohia submitted a withdrawal letter dated August 3, 2026, notifying the withdrawal of his consent to be named as a selling shareholder.
His proposed sale was relatively small compared with the institutional shareholders, but his removal is another change in the selling-shareholder line-up between the two offer documents.
Several shareholders leave their proposed stake sale unchanged
Not every shareholder has altered its proposed sale.
The RHP continues to include Canada Pension Plan Investment Board, Aranda Investments (Mauritius) Pte Ltd, The New India Assurance Company Limited, United India Insurance Company Limited, Crown Capital Limited, 2726247 Ontario Inc., The Oriental Insurance Company Limited, ICICI Lombard General Insurance Company Limited, TA Asia Pacific Acquisitions Limited, Soach Global Strategic Holdings Ltd., Be-In Eight s.r.l., Rajiv Bolla, Shaik Samdani Basha and Mahesh Gupta among the selling shareholders.
The final mix therefore reflects a combination of reduced proposed sales, an additional selling shareholder and the withdrawal of one DRHP-stage seller.
NSE will not get IPO proceeds
The NSE IPO is structured entirely as an offer for sale. Existing shareholders are selling their shares, rather than the exchange issuing fresh shares to raise capital.
As a result, the proceeds from the offer will go to the selling shareholders whose shares are sold in the IPO, rather than to NSE.
The RHP continues to identify NSE as a company with no identifiable promoter.
With the offer size now lower than proposed at the DRHP stage, the RHP gives investors a revised picture of the scale of the proposed share sale and the shareholders participating in it. The key changes are concentrated among a handful of large institutional sellers, while several other shareholders have retained their proposed sale quantities.