State Bank of India and its subsidiary are set to participate in the National Stock Exchange’s proposed ₹30,000 crore public offering.
State Bank of India (SBI) and its subsidiary SBI Capital Markets Ltd are planning to dilute a combined stake of up to 1% in the National Stock Exchange (NSE) through the exchange’s proposed initial public offering (IPO). SBI Chairman C S Setty said the bank plans to sell around 0.65% of its holding in NSE, while SBI Capital Markets is expected to divest another 0.35%. The combined transaction could therefore account for approximately 1% of the exchange’s equity.
The final stake sold could, however, be lower if other NSE shareholders also decide to participate in the public offer, Setty said.
Existing NSE holdings.
SBI currently owns a 3.23% stake in NSE, while SBI Capital Markets holds a 4.33% interest in the exchange. The proposed sale would therefore reduce the holdings of both entities if the entire planned portion is offered. The NSE IPO is expected to be valued at around ₹30,000 crore, making it one of the significant public offerings being prepared for India’s capital markets.
The proposed listing has attracted considerable attention because NSE is the country’s largest stock exchange and a key part of the financial market infrastructure. For SBI, the transaction represents another planned reduction in a stake held in a financial-sector business. Setty has indicated that there are no immediate plans to monetise stakes in other SBI subsidiaries.
SBI recently reduced its stake in the mutual fund business.
The proposed NSE stake sale comes shortly after SBI and its French partner Amundi diluted their holdings in SBI Mutual Fund through a ₹9,800-crore public offering.
The issue attracted strong investor demand and was reportedly subscribed around 42 times. Following the transaction, SBI’s holding in the asset management business declined from 61.76% to 55.46%, while Amundi’s stake also fell. Separately, SBI Chairman C S Setty said the bank’s home loan portfolio is expected to cross ₹10 lakh crore during the current quarter.
SBI had crossed the ₹9 lakh crore mark in its mortgage portfolio during the previous financial year. Setty said continued housing demand could help the lender reach the next milestone soon.
The bank currently has a significant presence in the housing finance market, with Setty putting its market share at nearly 28%. SBI operates more than 460 home loan processing centres across India.
