NSE IPO: Indian Bank to divest up to 17.91% of its holding in National Stock Exchange via Offer for Sale

Indian Bank is proposing to divest up to 15 lakh equity shares of the National Stock Exchange of India (NSE) through an Offer for Sale (OFS) as part of the exchange’s proposed Initial Public Offering (IPO).

The proposed stake sale represents 17.91% of Indian Bank’s shareholding in NSE and remains subject to the requisite regulatory approvals, the bank said in an exchange filing on Wednesday.

As part of the OFS process, the consent letter for the proposed transaction was executed on September 9, 2026. The stake sale is expected to be completed by the end of September 2026, subject to the proposed NSE IPO and applicable approvals.

According to the disclosure, Indian Bank had received a dividend of ₹29.32 crore from NSE for FY26.

Meanwhile, other NSE shareholders are also looking to pare their holdings as part of the proposed IPO. The New India Assurance Company on Wednesday said it will divest 1.05 crore shares of NSE through the proposed IPO. The proposed divestment represents 29.83% of the total shares held by the company in NSE.

Similarly, Bank of Baroda, on Tuesday, said it is looking to divest up to 76.90 lakh equity shares, representing 35% of its shareholding in NSE.

As part of the OFS process, the equity shares were transferred to an escrow account on September 8, 2026. The sale is expected to be completed by the end of September 2026, as indicated by NSE. According to the Wednesday's disclosure, Bank of Baroda had received a dividend of ₹76.90 crore from NSE for FY26.

NSE IPO size may shrink as shareholders cut OFS

The size of the National Stock Exchange (NSE) IPO may shrink, with the offer for sale (OFS) likely to be cut to 5.2-5.5%, from the 6% planned earlier, as some shareholders have backed out of the sale, PTI reported on Wednesday, citing people familiar with the matter.

The reduced OFS could bring down the overall issue size to ₹25,000-27,000 crore, compared with the earlier estimate of ₹30,000 crore. At this size, NSE may fall short of becoming India’s largest-ever public offering. Hyundai Motor India’s IPO, at ₹27,870 crore, currently holds the record, according to the report.

The reduction in the OFS size is understood to be driven by some shareholders choosing not to sell during the IPO, as they believe they could command a better valuation by selling their stakes at a later stage, the report said, citing the sources.

NSE IPO sets stage for September debut

The NSE IPO is likely to open for public subscription on September 18 and close on September 22, while the shares are likely to be listed on September 25, sources said. The listing is targeted before the ‘Pitru Paksha’ period begins on September 26.

The IPO price band is expected to be in the range of ₹1,700-1,785 per share, compared with the earlier estimate of ₹2,000 per share.

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.

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

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