10:20
Ahead of the long-awaited National Stock Exchange IPO, key selling shareholders have cut their offer size to 126.4 million shares compared to 148.9 million shares being offered earlier, according to sources.
State Bank of India, the largest selling shareholder, is cutting the number of shares it plans to sell through offer for sale from 24.75 million shares in the draft document to 15.97 million shares in the red herring prospectus (RHP).
SBI Capital Markets, which was added later as a selling shareholder, will be offloading 8.78 million shares.
Further, MS Strategic (Mauritius) has reduced its proposed sale from 16 million shares to 11 million shares while Bank of Baroda has cut its offer from 10.99 million shares to 7.69 million.
The IPO is now pegged to garner around Rs 22,500 crore to Rs 23,000 crore from the offer for sale -- from the earlier estimated size of Rs 30,000 crore.
Among other selling shareholders who have cut their size are Stock Holding Corporation of India and General Insurance Corporation of India with both of them now offering 6.19 million shares each.
National Insurance Company, Indian Bank, and Mahagony are also reducing their offerings. On the other hand, Amit Kumar Lohia, who had proposed to sell up to 25,000 shares at the DRHP stage, does not figure among the selling shareholders in the RHP.
The sources added that the trimming is on the back of expectations that they may get better price post-listing. The price band for the NSE IPO is expected to be Rs 1,700 to Rs 1,785 apiece.
The proposed OFS quantities of several other shareholders remain unchanged, such as the Canada Pension Plan Investment Board, Aranda Investments, The New India Assurance Company, United India Insurance Company, Crown Capital, Ontario Inc, among others.
The issue may open for subscription next week around September 18 with the listing on BSE being planned around September 25. In the unlisted market, NSE shares were trading at around Rs 1,985 apiece, according to data from UnlistedZone.
The grey market premium stood at around Rs 213 as of Thursday, down from Rs 228 a day earlier.
-- Khushboo Tiwari, Business Standard
