NSE IPO: IFCI, IDBI Bank, SBI, other stocks gain up to 3% as NSE files for India’s largest IPO. Who else is selling stake?

Shares of IFCI, IDBI Bank, SBI and others rose up to 3% on Thursday after the draft IPO papers filed by the National Stock Exchange (NSE) named the companies as the selling shareholders in the OFS component of the public issue that is expected to be India’s largest in history.

IFCI was the top gainer, rising 3% to Rs 92.60. Bank of Baroda followed suit, up over 2% at Rs 287. SBI traded marginally higher, while HDFC Life rose over a percent to Rs 589 per share. IDBI Bank, following its stellar 20% rise in the previous session, dipped over 4% on Thursday.

NSE filed its Draft Red Herring Prospectus (DRHP) with capital markets regulator SEBI on Wednesday, setting the ball rolling for an IPO that has been delayed for nearly a decade. The maiden public issue of the stock exchange will entirely comprise an offer for sale (OFS) of up to 14.89 crore shares or a 22.5% stake, expected to be worth around $3 billion.

IDBI Bank has been listed out as the largest listed selling shareholder in the OFS, as it aims to offload nearly 74.16 lakh shares in the NSE through its IPO. State Bank of India follows, offering 64.28 lakh shares, while IFCI offers 34.32 lakh shares. Bank of Baroda meanwhile aims to offload 10.99 lakh shares via the OFS.

HDFC Standard Life Insurance Company, which is now known as HDFC Life Insurance Company, is offering 24.75 lakh shares. Bajaj Holdings & Investment meanwhile is selling 20.40 lakh shares via the OFS.

Also read: NSE files DRHP for mega $3 billion IPO, SBI among 10 investors to sell stake

Sharp surge in IFCI, IDBI Bank shares ahead of NSE IPO filing

Notably, these stocks have seen significant surge in recent days amid rising buzz over NSE soon filing its DRHP. IDBI Bank shares rallied more than 17% on Wednesday, surging 24% in one week and 29% in one month.

IFCI shares jumped nearly 28% in one week and 45% in one month to hit fresh record highs. The rally was driven by the fact that IFCI owns a 52.86% stake in Stock Holding Corporation of India (SHCIL), which in turn, holds 4.4% of NSE as of the December quarter. Through its controlling interest in SHCIL, IFCI enjoys indirect exposure to NSE, making its stock particularly sensitive to developments related to the exchange’s IPO.

SBI, Bank of Baroda, HDFC Life Insurance Company and Bajaj Holdings & Investment shares have gained 3-7% in one week amid the rising buzz around NSE IPO and overall optimism in stock markets.

Also read: 10 key things investors need to know about NSE IPO

Who are the other selling shareholders in NSE IPO?

Tiger Global Five Holdings has been named as the largest shareholder participating in NSE’s IPO, as it aims to sell 1.48 crore shares via the OFS. Aranda Investments (Mauritius) Pte and SAIF II-SE Investments Mauritius plan to sell 99 lakh shares each, while GAGIL FDI offers to sell 86.62 crore shares.

Other selling shareholders in NSE’s mega IPO include Norwest Venture Partners X FII – Mauritius (78.37 lakh shares), Citigroup Strategic Holdings Mauritius (74.25 lakh shares), GS Strategic Investments (67.50 lakh shares), MS Strategic (Mauritius) (44.55 lakh shares), Quantum (M) Limited (42.33 lakh shares), PI Opportunities Fund – I (40 lakh shares), Housing Development Finance Corporation (8.11 lakh shares), GTI Capital Epsilon (7.26 lakh shares), Beacon India Private Equity Fund (7.02 lakh shares), Wolf Creek MB (6.71 lakh shares), Wolf Creek BMD MB (6.33 lakh shares), WCP Holdings III (6.19 lakh shares), J. Caird BMD MB (4.25 lakh shares), J. Caird MB (3.59 lakh shares), Quissett BMD MB (1.14 lakh shares) and Quissett MB (86,250 shares).

NSE’s much awaited IPO will provide liquidity for several long-term institutional investors while marking a major milestone for the country’s leading stock exchange. Earlier this year, SEBI granted a no-objection certificate (NOC) for NSE’s much-awaited IPO, removing a key regulatory hurdle that had delayed the process for years.

NSE currently trades in the unlisted market at around Rs 1,950-2,050 per share, implying a valuation of nearly Rs 5 lakh crore. This would make it one of the most valuable listed financial institutions in India once the public issue is completed.

According to Nitant Darekar, Research Analyst at Bonanza, the exchange is already commanding premium valuations in the unlisted market. “NSE remains a capital-light near-monopoly. At around Rs 1,950-2,170 in the unlisted market, it trades near 45x FY26 earnings. That’s rich, but below BSE at around 70x and MCX at around 80x,” Darekar said, adding that the recent settlement of the long-running co-location case has removed a key overhang that had weighed on the listing process for years.

Unlike most IPOs, where companies raise capital to fund expansion plans, NSE’s IPO is largely intended to provide liquidity and an exit route for long-standing investors.