BSE Stock Plummets as Massive ₹30,000 Crore NSE IPO Looms: Analysts Cite Loss of Monopoly Status

BSE Stock Plummets as Massive ₹30,000 Crore NSE IPO Looms: Analysts Cite Loss of Monopoly Status​

BSE shares experienced a sharp decline on June 17, snapping their three-day rally after it was revealed that their major peer, the National Stock Exchange (NSE), is likely to file for one of India’s largest Initial Public Offerings (IPOs).The stock exchange saw its value fall by 3.5% in trade, as uncertainty around the impending massive public offering weighed heavily on investor sentiment.

BSE Stocks Tumble Amid Loss of Monopoly Status​

At mid-afternoon trading, BSE shares were recorded at ₹4,029 apiece and were trading 3.2% lower.BSE was identified as the top loser within the Nifty Capital Markets index, which itself registered a 0.5% decline on June 17.The movement highlights the nervousness among investors regarding the loss of BSE’s singular position as India's only listed mega bourse.

Analysts suggested that the fall could be attributed to the exchange losing its market monopoly status.Furthermore, there is concern that the rich valuations at BSE might prompt investors to book profits and redirect their capital into NSE. This redirection is fueled by NSE holding a larger share of the Futures and Options (F&O) market in India.

Inside the ₹30,000 Crore Mega IPO Details​

The long-awaited IPO of the National Stock Exchange (NSE) is expected to move closer to reality with the exchange likely filing its Draft Red Herring Prospectus (DRHP) with SEBI later on Wednesday.This proposed public issue is specifically designed as an Offer for Sale (OFS), meaning existing shareholders will be collectively divesting a portion of their equity in the exchange.

Based on the unlisted market valuation, which stands at around ₹5 lakh crore, market participants estimate that the IPO size could reach approximately ₹30,000 crore.This massive offering is set to make it one of the largest capital market events in India’s financial history.Prior to the filing, a dedicated IPO committee within the exchange held meetings and concluded the process, with the NSE board having cleared the DRHP on Monday.

Who Are the Key Sellers in the NSE OFS?​

Merchant banking sources disclosed that State Bank of India (SBI) is expected to be the largest selling shareholder, planning to offer up to 24.75 million shares.Other significant sellers slated for the offering include MS Strategic (Mauritius) Limited and Canada Pension Plan Investment Board. These entities are set to divest substantial portions of their stake in NSE.

The lineup also features other major institutional sellers. Aranda Investments (Mauritius) Pte. Ltd. is projected to sell up to 11.24 million shares.Bank of Baroda and Stock Holding Corporation of India Ltd. are both expected to offer around 11 million shares each.General Insurance Corporation of India (GIC Re) may divest up to 10.65 million shares, while The New India Assurance Company Ltd. is slated to sell up to 10.5 million shares.

National Insurance Company Ltd. and United India Insurance Company Ltd. are also part of the selling structure, each expected to offer around 6 million shares.