NSE IPO: NIACL, IFCI, other stocks gain up to 14% as NSE files for India’s largest IPO. Who’s selling stake?

Shares of New India Assurance Company (NIACL), IFCI, and others surged up to 14% 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.

Shares of New India Assurance Company shares rallied 14% to Rs 188. While, that of IFCI rose over 4% to Rs 94 apiece on NSE. Bank of Baroda and General Insurance Corporation of India (GIC) followed suit, up around 2% at Rs 287. Meanwhile, SBI traded marginally higher.

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, expected to be worth around $3 billion.

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

According to the DRHP, the government-owned insurer, NIACL will offload more than 1 crore NSE shares through the offer-for-sale. The total acquisition cost of these shares stands at Rs 33.60 lakh.

State Bank of India (SBI) has been listed out as the largest listed selling shareholder in the OFS, as it aims to offload nearly 2.47 crore shares in the NSE through its IPO. Bank of Baroda, meanwhile, aims to offload 1.099 crore shares via the OFS, while Stock Holding Corporation offers 1.089 crore shares. GIC aims to sell 1.0658 crore shares, while the New India Assurance Company offers 1.05 crore shares.

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

Notably, these stocks have seen a 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 amid the buzz around the private lender likely being one of the sellers. The stock, however, dropped more than 4% today.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 and Bank of Baroda shares have gained 3-7% in one week amid the rising buzz around NSE IPO and overall optimism in stock markets.

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.

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

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.