SBI group to offload 1% stake in NSE through mammoth IPO

State Bank of India will reduce its stake in the National Stock Exchange by 0.65 per cent through the country's largest stock exchange's landmark initial public offering, according to SBI Chairman C S Setty. SBI Capital Markets, the bank's subsidiary, will separately divest a 0.35 per cent stake, bringing the combined divestment by the SBI group to approximately 1 per cent of the NSE.

Currently, SBI holds a 3.23 per cent stake in NSE, while SBI Capital Markets maintains a 4.33 per cent holding in the bourse. The two entities will participate in the NSE's proposed Rs 30,000-crore share sale to the public, which is expected to be one of India's largest IPOs to date.

Setty clarified that the actual quantum of stake dilution could be lower than the targeted 1 per cent should other shareholders also participate in the offering. The bank has no immediate plans to monetise stakes in its other subsidiaries, he added.

The NSE IPO comes as part of a broader market liberalisation drive and marks a significant milestone for India's financial markets infrastructure. The exchange's public listing is expected to enhance its transparency and governance standards while providing liquidity to existing shareholders.