The key development is that SBI Capital Markets Limited, which holds a 4.33% stake in NSE, will now participate in the offer for sale (OFS).
However, there is an important detail investors should not miss: the overall IPO size has not increased. The shares being sold by SBI Capital Markets are essentially being carved out of the existing allocation of State Bank of India.
Here are three key things to know about the latest NSE IPO update.
1. NSE IPO Size Remains Unchanged
At first glance, the addition of another selling shareholder may appear to suggest that the NSE IPO has become larger.
That is not the case.
In the original DRHP, SBI was proposed to sell up to 2.475 crore NSE shares through the IPO.
Under the latest filing:
SBI will sell: 1.59 crore shares
SBI Capital Markets will sell: 87.8 lakh shares
Total: 2.475 crore shares
Therefore, the overall offer for sale remains unchanged.
The total NSE IPO size also continues to stand at approximately 14.89 crore shares. In other words, the change is in the composition of the selling shareholders, rather than an increase in the size of the IPO.
Why does this matter?
For investors, this is an important distinction.
A larger IPO could potentially mean greater dilution or a larger supply of shares entering the market. But in this case, the total offer size has remained the same.
The latest filing primarily changes who is selling the shares, not how many shares are being offered.
2. SBI Capital Markets Owns More NSE Shares Than SBI
The second major takeaway is perhaps the most interesting.
According to the DRHP, SBI Capital Markets owns 10.73 crore NSE shares, representing a 4.33% stake.
This makes SBI Capital Markets the fourth-largest shareholder in NSE.
Interestingly, its parent company, State Bank of India, holds 7.98 crore shares or a 3.23% stake, making SBI's direct holding smaller than that of its subsidiary.
SBI Capital Markets was not included among the selling shareholders in the original June DRHP. With the latest filing, it has now entered the OFS.
The filing also discloses that SBI Capital Markets acquired its NSE shares at a cost of approximately ₹0.38 per share.
This provides an interesting perspective on the potential value creation for the shareholder if NSE eventually lists at the valuations currently being discussed in the market.
3. NSE's Three-Year Acquisition Cost Has Changed
Another change in the latest filing relates to the weighted average acquisition cost of shares held by selling shareholders.
The one-year and 18-month acquisition cost figures remain unchanged at approximately:
1-year: ₹1,909.02 per share
18-month: ₹1,747.54 per share
However, the three-year acquisition cost has fallen from ₹229.23 to ₹205.86 per share.
That represents a decline of nearly 10%.
The change is likely linked to SBI Capital Markets being included in the pool of selling shareholders in the latest filing.
For investors studying the NSE IPO, this data is useful because the acquisition cost of existing shareholders can provide additional context around the potential gains that early investors or shareholders could realise following the IPO.
