SEBI cleared the National Stock Exchange’s roughly ₹30,000 crore IPO on 4 September 2026, ending a decade-long wait. Buried in the offer-for-sale structure is a smaller story: five public sector insurers stand to collectively gain around ₹7,200 crore by selling part of their NSE holdings, while LIC, the exchange’s biggest shareholder, isn’t selling at all.
NSE has been trying to go public since 2016. That finally moved forward on 4 September 2026, when SEBI issued its observation letter clearing the exchange’s IPO, an offer-for-sale of up to 14.89 crore shares, roughly 6% of NSE’s equity, with no fresh capital coming into the company itself.
Every rupee raised goes straight to existing shareholders cashing out part of their stake, and a chunk of that money is headed to some familiar, government-owned names.
The Long Wait Finally Clears
The delay wasn’t really about demand. NSE had to work through years of scrutiny tied to a co-location scandal before SEBI would sign off, eventually settling related proceedings for roughly ₹1,491 crore in July 2026 before the IPO could move ahead.
With that cleared, the exchange filed its DRHP in June, and the SEBI observation letter is publicly listed on SEBI’s own filing page.
Follow the Money: Who’s Selling, Who’s Staying Put
Five public sector general insurers, GIC, New India Assurance, National Insurance, United India Insurance and Oriental Insurance, together hold around 16.5 crore NSE shares. Between them, they plan to sell about 4 crore shares in the IPO:
- GIC: roughly 1.07 crore shares
- New India Assurance: roughly 1.04 crore shares
- National Insurance: roughly 60 lakh shares
- United India Insurance: roughly 60 lakh shares
- Oriental Insurance: roughly 50 lakh shares
At an assumed price of ₹1,800 a share, that adds up to the ₹7,200 crore figure being talked about, though the real number depends on where the final IPO price lands.
LIC, meanwhile, is doing the opposite. As NSE’s single largest shareholder with a 10.72% stake, roughly 26.5 crore shares, LIC isn’t selling anything in this round, choosing instead to stay invested.
A Timely Boost for Some Shaky Balance Sheets
For three of the five sellers, this isn’t just a nice-to-have gain. National Insurance, United India Insurance and Oriental Insurance had all reported negative solvency ratios as of March 2025, a sign of financial strain. Selling part of their NSE stake, while retaining the bulk of it, roughly 7.3 crore shares between them worth an estimated ₹13,100 crore at ₹1,800 apiece, could give their balance sheets some genuine breathing room.
ICICI Lombard, a private insurer, is also in the mix, planning to sell around 23.5 lakh shares for an estimated ₹383 crore, while holding on to the rest of its stake.
Not Sure Which Insurer Fits You Best?With state insurers like LIC, GIC and New India all coming up in the same conversation, it’s easy to lose track of which one actually makes sense for you. With MyRupia, you can book a free consultation to figure out the right insurer and policy for your needs, PSU or private. |
Also Read: Public Sector General Insurers Witness Higher Losses in FY26: What It Means For Policyholders
Disclaimer: This MyRupia article provides information based on publicly available government, regulatory and industry sources. It does not constitute investment, financial, tax, insurance or legal advice. Information, examples, market data and expert views may change over time and do not represent a recommendation to buy, sell, invest in or surrender any financial product. Readers should consider their individual circumstances and consult a qualified financial professional before making financial decisions.