NEW DELHI, (Economy India):State Bank of India (SBI) and its subsidiary, SBI Capital Markets Ltd, are planning to dilute up to 1 per cent stake in the National Stock Exchange (NSE) through the exchange’s proposed Rs 30,000-crore initial public offering (IPO).
SBI Chairman C S Setty said the bank will participate in the proposed divestment and plans to sell a 0.65 per cent stake in NSE. SBI Capital Markets Ltd, which also holds shares in the exchange, may dilute an additional 0.35 per cent stake.
Together, the two entities could sell around 1 per cent of their combined holding in the National Stock Exchange.
“We propose to divest 0.65 per cent and 0.35 per cent by SBI Capital Markets because both of us hold the stake,” Setty said, adding that the final percentage could be lower depending on the participation of other shareholders in the IPO.
The proposed IPO is expected to be one of the biggest public offerings in India’s capital market. NSE is India’s largest stock exchange and plays a major role in equity, derivatives and other financial market transactions.
The stake sale by SBI and its subsidiary would provide investors with an opportunity to participate in the ownership structure of one of India’s most important financial market institutions.
The exact size of the stake dilution could depend on the final structure of the IPO and the number of existing shareholders who decide to sell their holdings through the public offer.
The proposed Rs 30,000-crore NSE IPO is expected to attract significant attention from domestic and international investors, given the exchange’s dominant position in India’s rapidly growing capital markets.
SBI’s decision to participate in the offering highlights the potential for existing institutional shareholders to unlock value from their investments in NSE while also helping broaden the exchange’s shareholder base through a public listing.
As preparations for the IPO move forward, market participants will closely watch the final offer structure, valuation and the participation of major shareholders, including SBI and other institutional investors.
(Economy India)
