State Bank of India (SBI) and its subsidiary SBI Capital Markets are set to sell a combined 1 per cent stake in the National Stock Exchange (NSE) through the exchange’s proposed initial public offering, marking another significant step towards its long-awaited stock market debut.
SBI Chairman C S Setty said the bank plans to offer a 0.65 per cent stake in NSE, while SBI Capital Markets will sell 0.35 per cent. The final quantity could change depending on whether other shareholders also participate in the offer.
The proposed stake sale is part of NSE’s planned public issue, which is expected to be valued at around ₹30,000 crore. The IPO is likely to attract considerable interest because NSE is one of India’s most important market infrastructure institutions and has a dominant position in the country’s equity and derivatives markets.
SBI currently owns 3.23 per cent in NSE, while SBI Capital Markets holds a 4.33 per cent stake. Following the proposed sale, the SBI group would continue to remain a shareholder in the exchange.
The latest development provides greater clarity on the ownership structure ahead of the NSE IPO. SBI had earlier been identified as a potential selling shareholder. The inclusion of SBI Capital Markets means the parent bank and its subsidiary will together participate in the offer.
Under the revised structure, SBI is expected to sell 1.59 crore shares, while SBI Capital Markets will offer 87.8 lakh shares. The combined sale amounts to 2.475 crore shares, keeping the overall proposed offer size unchanged.
The transaction is expected to be structured as an offer for sale (OFS), meaning the shares being sold are existing shares held by shareholders. Unlike a fresh issue, an OFS does not result in new shares being issued by NSE or bring additional capital directly into the exchange.
Instead, the proceeds from the shares sold by SBI and SBI Capital Markets will accrue to the selling shareholders. For SBI, the transaction provides an opportunity to partially monetise its investment in NSE while continuing to retain a sizeable holding.
The proposed listing has been closely followed by investors and participants in India’s capital markets. NSE is a critical part of the country’s financial infrastructure, facilitating trading across equities, equity derivatives and other market segments.
Its public listing would also give investors an opportunity to participate directly in the ownership of the exchange. More importantly, a listed NSE would provide a market-determined valuation for one of India’s largest financial market institutions.
The NSE IPO has been in the pipeline for several years, with regulatory developments and changes in the exchange’s shareholder structure shaping its route towards the public market. The latest disclosures indicate that the exchange is moving closer to the next stage of the listing process.
For SBI, the decision to dilute a portion of its NSE holding comes as the lender continues to review its investments and capital allocation. However, the bank does not appear to be planning a broad-based sell-down of stakes in its other subsidiaries at this stage.
The lender is simultaneously seeing expansion in its core banking business. Setty said SBI’s housing loan portfolio is expected to cross ₹10 lakh crore during the current quarter.
Housing finance remains a major component of SBI’s retail banking operations. The anticipated milestone highlights the scale of the bank’s mortgage business and its continued focus on retail credit.
The NSE stake sale, however, is likely to remain the more closely watched development for capital-market investors. The exchange’s strong position in India’s securities market, combined with the expected ₹30,000-crore size of the public offer, makes the proposed IPO one of the most significant listings in the country’s primary market.
The transaction could also provide a clearer picture of the value of NSE‘s business. For existing investors, including SBI and SBI Capital Markets, the IPO offers a route to realise part of their investment while maintaining exposure to the exchange’s future growth.
The final structure of the offer, including the precise number of shares sold by individual shareholders, will depend on the regulatory process and participation of other investors.
The planned 1 per cent dilution by the SBI group represents an important development in NSE’s journey towards becoming a publicly listed company. If the proposed ₹30,000-crore issue proceeds as planned, it could become one of the largest and most closely watched IPOs in India’s capital-market history.