Mumbai (Maharashtra) [India], September 22 : Large institutional shareholders of the National Stock Exchange (NSE) have stayed invested in the course despite participating in its initial public offering (IPO), with several of its biggest investors selling only a small portion of their holdings through the offer for sale (OFS).
The NSE IPO, which is entirely an OFS, closed for subscription on Monday.
Data on the selling shareholders showed that they collectively held a 36.82 per cent stake in NSE before the OFS and have tendered shares equivalent to 5.11 per cent of the exchange's equity, leaving them with a combined 31.71 per cent stake after the offering.
The selling shareholders largely comprise institutional investors, including nine foreign institutional investors (FIIs) and 11 domestic institutions. The nine foreign investors collectively held a 15.96 per cent stake before the IPO, while the domestic institutions, comprising 10 public sector entities and ICICI Lombard General Insurance, held 20.86 per cent.
The data indicates that some of NSE's largest institutional shareholders have opted to retain most of their exposure to the exchange even as they monetise a part of their holdings through the IPO.
Aranda Investment (Mauritius) Pte Ltd, which held 4.54 per cent in NSE before the OFS, has offered shares equivalent to 0.45 per cent of NSE's equity, or about 10 per cent of its holding. Its stake would stand at 4.09 per cent after the OFS.
Similarly, Stock Holding Corporation of India, which had a 4.44 per cent stake, has tendered about 6 per cent of its holding, reducing its stake by 0.25 percentage points to 4.19 per cent. SBI Capital Markets has offered about 8 per cent of its 4.33 per cent pre-OFS holding and would retain a 3.98 per cent stake.
Mahagony Limited, which held 3.73 per cent before the OFS, has offered just about 3 per cent of its holding and would retain a 3.61 per cent stake. The data provided indicates that these large institutional shareholders have, on average, reduced their holdings by only around 7 per cent.
State Bank of India (SBI), another large domestic shareholder, has tendered about 20 per cent of its pre-OFS holding. Its stake is set to decline from 3.23 per cent to 2.58 per cent.
Among other foreign investors, Crown Capital Limited has offered about 11 per cent of its holding, reducing its stake from 2.07 per cent to 1.83 per cent. TA Asia Pacific Acquisitions Limited has tendered about 6 per cent of its holding and would retain a 1.30 per cent stake compared with 1.38 per cent before the OFS.
However, the extent of stake reduction varies across shareholders. Canada Pension Plan Investment Board has tendered about 30 per cent of its holding, bringing its stake down from 1.60 per cent to 1.12 per cent, while MS Strategic (Mauritius) Limited has offered about 37 per cent of its holding, reducing its stake from 1.20 per cent to 0.76 per cent.
Among domestic institutions, General Insurance Corporation of India has offered around 15 per cent of its holding, while National Insurance Company and Oriental Insurance Company have tendered about 11 per cent and 14 per cent, respectively. New India Assurance Company has offered about 30 per cent of its holding.
Bank of Baroda and United India Insurance Company are among those selling a relatively larger portion of their holdings, tendering around 35 per cent and 31 per cent, respectively. Their post-OFS stakes would stand at 0.58 per cent and 0.54 per cent.
Overall, the shareholding data suggests that while institutional investors are using the NSE IPO to partially monetise their long-held stakes, several of the exchange's largest shareholders are retaining the bulk of their investments following the offering.