The New India Assurance Company on Wednesday, 9 September, said it will divest 1.05 crore shares of the National Stock Exchange of India (NSE) through the proposed NSE IPO. The proposed divestment represents 29.83% of the total shares held by the company in the National Stock Exchange of India.
The New India Assurance Company will offload its NSE shares in an offer for sale, which, as per reports, is to be launched this month.
In an exchange filing during market hours on 9 September, The New India Assurance Company said: “We wish to inform you that The New India Assurance Co. Ltd. proposes to divest 1,05,00,000 equity shares of the National Stock Exchange of India Ltd. (NSEIL).”
“This proposed divestment represents 29.83% of the total shares currently held by the company in NSEIL. The transaction will be executed by way of an offer for sale (OFS) through an initial public offering (IPO), subject to the receipt of all necessary regulatory approvals.”
Earlier on 8 September, Bank of Baroda said it will divest up to 76.90 lakh equity shares, representing 35% of its shareholding in the NSE, through the proposed OFS.
NSE IPO details
The NSE is likely to price its much-awaited IPO at ₹1,700-1,785 per share, according to a Reuters report citing a source familiar with the matter.
At the upper end of the proposed price band, the IPO would value NSE at around ₹4.4 lakh crore ($46.41 billion), placing it among India’s largest companies by market capitalisation.
However, the size of the NSE IPO may shrink with the OFS likely to be cut to 5.2-5.5%, from the 6% planned earlier, as some shareholders have backed out of the sale, PTI reported, quoting people familiar with the matter.
The reduced OFS could bring down the overall issue size to ₹25,000- ₹27,000 crore, compared with the earlier estimate of ₹30,000 crore.
Earlier, experts estimated the IPO to be of nearly ₹30,000 crore, set to surpass Hyundai Motor India’s ₹27,870-crore offering in 2024 to become India’s largest IPO.
According to DRHP, The New India Assurance Company, SBI, MS Strategic (Mauritius) Limited, Canada Pension Plan Investment Board, Bank of Baroda, Aranda Investments (Mauritius) Pte, Stock Holding Corporation of India, General Insurance Corporation of India, National Insurance Company, and United India Insurance Company are among the selling shareholders in the OFS.
According to a PTI report, quoting sources, the NSE IPO is likely to open for public subscription on 18 September and it will list on 25 September 25.
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