Public sector companies are all set to make bumper gains on their investments in NSE, with the cloud around its proposed initial public offer clearing.

Many large public financial institutions such as LIC, Stock Holding Corporation of India, SBI Capital Markets, SBI and General Insurance Corporation hold about 31 per cent stake worth ₹1.80 lakh crore in NSE and they will get an opportunity to book profits in the proposed IPO.

Interestingly, many of these PSUs are listed on the stock exchanges and unlocking value in their long-term investments in NSE would benefit investors as well.

For instance, insurance behemoth LIC holds 10.72 per cent stake in NSE worth ₹61,687 crore, according to the exchange’s latest traded share price of ₹2,325 a piece.

Similarly, Stock Holding Corporation and SBI Capital Markets own 4.44 per cent and 4.33 per cent valued at ₹25,549 crore and ₹24,916 crore, while SBI and GIC can encash ₹18,587 crore and Rs 9,437 crore with their holdings of 3.23 per cent and 1.64 per cent, respectively.

Ratish Gupta, Director, Wealth Wisdom India, said a partial dilution in NSE’s proposed IPO will allow PSUs to monetise part of their holding, potentially booking significant gains given NSE’s premium valuation and this will improve their capital position without requiring budgetary support.

However, he said, depending on the scale of dilution, it may reduce their collective influence on NSE’s strategic decisions, especially if no structured shareholder agreements are retained post-listing.

The NSE share price has gained substantially in the last few months as investors have lapped up stocks on the unlisted share trading platforms.

NSE first announced its IPO plans way back in 2016. However, it was delayed as the exchange faced a series of regulatory and governance hurdles. The exchange had written to SEBI for an NOC with a similar request in November 2019, twice in 2020 and thereafter in August 2024.

Earlier this week, NSE again filed two applications with the market regulator SEBI to settle the persisting co-location and dark fibre cases by offering to pay a total ₹1,388 crore. If accepted, this would be the highest amount offered by any entity to settle a case till date.

SEBI is believed to have accepted NSE’s consent application to settle the cases with payment of Rs 1,388 crore, and is likely to give a green signal by early next month, sources said.

A consent application is a settlement mechanism where SEBI resolves proceedings with parties without admitting guilt. It allows for a faster, less costly resolution than a full-fledged legal battle.

Published on June 28, 2025