Suspense Crime, Digital Desk : There was much elation when after a decade the State Bank of India launched an initial public offering.. NSE IPO News : NSE is all set for its IPO, The stock exchange has filed a draft red herring prospectus for the same with the capital markets regulator, SEBI. The country’s biggest public sector bank of India, State Bank of India is looking at grabbing a huge bumper lottery through this IPO. SBI is likely to realize a profit of over 5000 crores from this big IPO. Interestingly enough, the bank had invested just about 2 crores in the NSE three decades ago.Huge profit of 2,56,775%In fact the largest seller on NSE IPO is SBI. The bank has decided to sell 24,750,000 stocks on NSE. The bank bought these stocks during 1993 and 1999 at the avarage price of 80 paise per share. The total values of buy is 1.98 crore. The current values of these stocks in Unlistited market at NSE is 2,055 per share and the NSE market is beyond the value of 5,086 Crore. The return on initial investment is 2,56,775%.As per the draft paper NSE, the proposed IPO NSE will be 100 percent offer for sale, in which existing shareholders will sell a total of 14.89 crore shares. In return for this issue, shareholders will sell approximately 6 percent of their total stake in NSE. SBI will not be selling any stake in NSE while its affiliate, MS Strategic (Mauritius) Limited will sell 1.60 crore shares. State Bank of India will sell stake in NSE, and has a stake of 3.23 percent in NSE, while subsidiary SBI Capital Markets has a stake of 4.33 percent. Stock Holding Corporation of India will sell stake of 4.44 percent.The other significant equity sale marker for the issue are Canada pension plan investment board (11.9 mill. Shares), Aranda investments (Mauritius) Pvt. Ltd. (11.2 mill. Shares), Bank of Baroda (11.0 mill. Shares) and stock holding Corporation of India Ltd. (10.9 mill. Shares). However the life insurance corporation of India (LIC), the largest stakeholder on NSE, with 10.72 per cent would not be selling any equity in the issue.However, NSE had initially filed an IPO proposal in 2016 to raise close to 10,000 crores, but SEBI as received the application for the first time refused to give permission citing operational operations and co-location as reasons. Almost 9 years down the lane, the matter got resolved and NSE went ahead with the IPO. SEBI granted the NOC this year after which the NSE board approved the IPO.
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