PSUs in NSE IPO: How much did SBI, other government entities make in India’s second largest offer?

As the much-awaited listing of the National Stock Exchange (NSE) finally arrived, the Rs 22,562 crore IPO brought a windfall for its public-sector shareholders, with 10 PSUs potentially making a combined profit of around Rs 12,802 crore by selling their shares at the upper end of the IPO price band.

NSE’s Rs 22,561.57 crore IPO was entirely an offer for sale (OFS), with existing shareholders proposing to sell up to 12.64 crore equity shares. The issue opened for subscription on September 17, 2026, and closed on September 21, with NSE shares making their market debut on September 24.

According to the Red Herring Prospectus (RHP), 23 shareholders participated in the OFS, including 10 public-sector entities. These were State Bank of India (SBI), The New India Assurance Company, SBI Capital Markets, Bank of Baroda, Stock Holding Corporation of India, General Insurance Corporation of India, United India Insurance Company, Oriental Insurance Company, National Insurance Company and Indian Bank.

PSUs Could Unlock Rs 12,811 Crore

The 10 public-sector shareholders could collectively receive around Rs 12,811.37 crore from the sale of their maximum proposed shares, assuming the OFS was priced at the upper end of Rs 1,785 per share.

Their combined acquisition cost for these shares, based on the weighted average costs disclosed in the RHP, was only around Rs 9.20 crore. This left them with a potential profit of approximately Rs 12,802.17 crore, before applicable taxes.

The calculation assumed that each shareholder sold the maximum number of shares disclosed in the RHP at Rs 1,785 apiece. The actual proceeds and gains could vary depending on the final number of shares sold and the eventual offer price.

LIC Ups Stake in NSE

Life Insurance Corporation of India (LIC), the largest shareholder of the National Stock Exchange of India (NSE), received shares worth around Rs 450 crore through the exchange’s anchor book ahead of its much-awaited initial public offering (IPO).

According to the Red Herring Prospectus (RHP), LIC held 26.52 crore NSE shares, representing a 10.72% stake and making it the exchange’s largest shareholder. The anchor allocation added to LIC’s existing exposure to NSE. The exchange raised Rs 6,746.18 crore from 189 anchor investors, with shares allotted at the upper end of the IPO price band of Rs 1,785 apiece.

LIC was allotted 22,42,584 shares worth Rs 400.30 crore at the anchor price. The LICI ULF-Growth Fund received another 2,24,096 shares worth Rs 40 crore, while the LICI New Pension Plus Growth Fund was allotted 56,024 shares worth Rs 10 crore.

Together, the three LIC-linked entities received shares worth around Rs 450.30 crore as part of the anchor allocation. LIC remained NSE’s largest shareholder, with its 10.72% stake putting it ahead of a mix of domestic and global institutional investors.

SBI Set for Biggest Windfall

State Bank of India was set to see the largest gain among the 10 public-sector shareholders, with the lender offering up to 1.60 crore shares in the OFS.

At Rs 1,785 per share, the stake sale could generate approximately Rs 2,850.54 crore. SBI’s reported weighted average acquisition cost was just Rs 0.80 per share, putting the total acquisition cost of the shares on offer at about Rs 1.28 crore.

That resulted in a potential profit of nearly Rs 2,849.26 crore for SBI.

The New India Assurance Company was set to be the second-largest beneficiary. It offered 1.05 crore shares, which could fetch approximately Rs 1,874.25 crore at the upper price band. The reported acquisition cost of these shares was only around Rs 33.6 lakh, implying a potential profit of approximately Rs 1,873.91 crore.

Other PSU Shareholders

SBI Capital Markets offered up to 87.81 lakh shares, which could generate around Rs 1,567.34 crore at Rs 1,785 per share. Based on the stated acquisition cost, its potential profit was approximately Rs 1,567 crore.

Bank of Baroda offered nearly 76.90 lakh shares, potentially generating Rs 1,372.73 crore in proceeds and around Rs 1,372.32 crore in profit.

Stock Holding Corporation of India raised approximately Rs 1,104.47 crore from its offer of 61.88 lakh shares. General Insurance Corporation of India, which offered the same number of shares, could also realise approximately Rs 1,104.47 crore. United India Insurance Company offered 60 lakh shares, translating into potential proceeds of Rs 1,071 crore at the upper price band.

Oriental Insurance Company could generate around Rs 884.82 crore from its proposed sale of 49.57 lakh shares, while National Insurance Company could raise approximately Rs 714 crore from its offer of 40 lakh shares. Indian Bank offered 15 lakh shares, which could fetch approximately Rs 267.75 crore.

NSE Stock Market Debut

NSE shares listed at Rs 1,800 apiece on the BSE, less than a 1% premium over its IPO price of Rs 1,785 a share. NSE’s post-listing market capitalisation stood at Rs 4.63 lakh crore, making it the ninth largest listed company in the Indian stock market. Data showed that it had overtaken FMCG bellwether HUL and healthcare giant Sun Pharmaceuticals.

The newly listed exchange ranked behind Reliance Industries which had a market capitalisation of Rs 16.77 lakh crore, followed by HDFC Bank at Rs 11.25 lakh crore, along with Bharti Airtel, ICICI Bank, SBI, TCS, Bajaj Finance, and LT, stock exchange data showed.


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