NSE IPO likely to see SBI, Morgan Stanley and six others cut planned share sale

State-run lender State Bank of India (SBI) has reduced the number of shares it plans to sell in the proposed Stock Exchange of India (NSE) IPO by 87.8 lakh shares to 1.597 crore shares from 2.475 crore shares, according to sources on Thursday (September 10).

Morgan Stanley has also cut its proposed share sale by 50 lakh shares to 1.10 crore from 1.60 crore shares. Stock Holding Corporation of India Ltd has reduced its proposed sale from 1.089 crore shares to 61.9 lakh shares, while General Insurance Corporation of India (GIC Re) has cut its proposed sale from 1.066 crore shares to 61.9 lakh shares, sources in the know told CNBC-TV18.

Bank of Baroda has reduced its proposed share sale by 33 lakh shares to 76.9 lakh shares from 1.099 crore shares. Insurance has cut its proposed sale from 60 lakh shares to 40 lakh shares.

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Mahagony has reduced its proposed sale from 50 lakh shares to 30 lakh shares, while Indian Bank has cut its proposed sale from 24.8 lakh shares to 15 lakh shares. Together, the eight shareholders have reduced their proposed share sale by 3.123 crore shares.

The IPO price band is expected to be in the range of ₹1,700-1,785 per share, against an earlier estimate of ₹2,000 per share. The NSE IPO is likely to open for public subscription on September 18 and close on September 22. The shares are likely to be listed on September 25.

The NSE's offering will compete with that of Jio Platforms, billionaire Mukesh Ambani-led conglomerate's digital services arm. Jio's offering is estimated to be ₹37,700 crore, but its timing has not yet been announced.

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Last week, markets regulator SEBI gave clearance to NSE to go ahead with its public issue. The approval marked a major step for NSE, whose listing plans had been stalled for nearly a decade due to regulatory hurdles, including the co-location controversy.

NSE filed its draft prospectus with SEBI in June. However, the approval timeline slipped after SBI Capital Markets was added to the list of selling shareholders, a change that triggered a fresh 21-day public feedback window on the revised documents.

As per the draft papers, NSE's offering was structured entirely as an OFS of up to 14.89 crore shares, roughly 6% of the exchange's paid-up capital. Since the issue is entirely an offer for sale, proceeds will flow to selling shareholders rather than to the exchange itself.

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