New India Assurance and SBI Lead Windfall Gains of Up to 557700 Percent in ₹22,562 Crore NSE IPO

The impending public listing of the National Stock Exchange of India Ltd (NSE) is set to generate historic returns for its early institutional backers, with some founding state-run entities logging gains exceeding 5,57,700% on their decades-old holdings.

According to the Red Herring Prospectus (RHP) filed by the bourse, the offer for sale (OFS) comprises up to 12.64 crore (126,436,650) equity shares of face value ₹1 each, with no fresh capital issue. With the price band fixed at ₹1,700 to ₹1,785 per equity share, the total issue size stands between ₹21,486.53 crore and ₹22,561.57 crore. Bidding opens for the public on September 17, 2026, and closes on September 21, 2026, with anchor bidding scheduled for September 16.

Top Selling Shareholders and Their Returns:

• The New India Assurance Company: Leading the pack in percentage returns, the state-run insurer acquired its shares at a weighted average cost of just ₹0.32 apiece. At the upper price band of ₹1,785, the company stands to book a 5,57,712% return, translating to an absolute profit of approximately ₹1,874 crore.
• SBI Capital Markets: Holding an average acquisition cost of ₹0.38 per share, the investment banking arm of SBI is projected to earn a 4,69,637% return, translating to a gain of ₹1,567 crore.
• Stock Holding Corporation of India: Having purchased its shares at an average acquisition cost of ₹0.46 each, the custodian is slated to realize a 3,87,943% return, booking an estimated gain of ₹1,104 crore.
• State Bank of India (SBI): The country's largest public-sector lender emerges as the largest individual seller by volume, offloading up to 1,59,69,410 equity shares. Having acquired the shares at an average cost of ₹0.80 each, SBI is poised to generate around ₹2,849 crore in gross profit, representing a 2,23,025% return.

Together, the top 10 selling shareholders in the public issue are set to reap an estimated profit of ₹16,500 crore against an original aggregate acquisition investment of approximately ₹534 crore.

Key Sellers and Notable Stances

Other institutions paring their stakes in the OFS include Bank of Baroda, Canada Pension Plan Investment Board (CPPIB), Aranda Investments (Mauritius) Pte Ltd, MS Strategic (Mauritius) Ltd, General Insurance Corporation of India (GIC), and United India Insurance Company.

In contrast, Life Insurance Corporation of India (LIC)—the exchange’s single largest domestic institutional shareholder holding a 10.72% stake (around 26.53 crore shares)—has opted out of the OFS entirely. LIC will retain its complete shareholding post-listing, allowing it to preserve its balance-sheet exposure to India's premier financial market infrastructure provider.

Impact on Indian Financial Balance Sheets

The proceeds will directly flow to the selling shareholders rather than the exchange, providing a timely capital injection for public sector entities. For general insurers such as New India Assurance and GIC, monetizing fractions of their holdings will fortify their solvency margins and bolster regulatory capital without needing sovereign recapitalization.

The net offer reserves 50% for Qualified Institutional Buyers (QIBs), 35% for retail individual investors, and 15% for Non-Institutional Investors (NIIs), with minimum bids starting at eight shares. Expected share allotment is anticipated around September 22, followed by a tentative trading debut on September 24.

Tags: National Stock Exchange State Bank of India The New India Assurance Company LIC SEBI Bank of Baroda