Five state-run insurers could realise gross proceeds of up to ₹5,650 crore from NSE’s IPO. LIC, the exchange’s largest shareholder, is retaining its 10.72% stake.
Five public-sector insurers could realise sale proceeds of about ₹5,380 crore to ₹5,650 crore from the National Stock Exchange IPO, based on the final sale quantities and price band.
SEBI issued its observation letter on September 4, allowing NSE to move ahead with the IPO process and file its Red Herring Prospectus. NSE’s September 10 Red Herring Prospectus sets a price band of ₹1,700-₹1,785 and offers up to 12.64 crore existing shares, or about 5.1% of the exchange’s equity. Since NSE is not issuing new shares, the money raised will go to shareholders selling their holdings.
Revised Offer Cuts Earlier Estimates
GIC Re, New India Assurance, National Insurance, United India Insurance and Oriental Insurance are among the selling shareholders. Together, the five insurers are set to sell about 3.16 crore shares. Under the revised offer, GIC Re will sell 61.9 lakh shares, New India Assurance 1.05 crore, National Insurance 40 lakh, United India 60 lakh and Oriental Insurance about 49.57 lakh. GIC Re and National Insurance reduced their proposed sales from the draft prospectus.
At ₹1,700-₹1,785 per share, those shares would fetch about ₹5,380 crore to ₹5,650 crore in gross proceeds, before taxes and offer-related expenses.
This is a significant reduction from earlier ₹7,200 crore estimates that were based on the draft-stage sale quantities of about 4 crore shares and at an assumed price of ₹1,800 per share.
PSU Insurers Retain About 13.4 Crore NSE Shares
Even after the IPO sales, the five public-sector insurers participating in the offer would retain substantial holdings in NSE. GIC Re, New India Assurance, National Insurance, United India Insurance and Oriental Insurance would together retain about 13.40 crore NSE shares after selling approximately 3.16 crore shares through the offer.
LIC is not among the selling shareholders. It holds about 26.53 crore NSE shares, representing 10.72% of the exchange. LIC’s FY25 annual report also records one nominee director at NSE alongside its 10.72% direct holding. LIC will retain its stake through the IPO.
IRDAI requires insurers to maintain a control-level solvency ratio of 1.50 and says capital may be needed to maintain solvency and meet financial and liquidity requirements. Three insurers remain below IRDAI’s 1.50 control-level solvency ratio. The FY26 solvency ratios stood at negative 1.11 for National Insurance, negative 1.36 for United India and negative 1.63 for Oriental Insurance.
Industry experts have said NSE’s listing could raise the recognised value of retained holdings and strengthen the insurers’ asset bases and net worth. Vivek Iyer, partner and financial services risk leader at Grant Thornton Bharat, said the one-off proceeds would not resolve the solvency problem because the stressed insurers require substantially more capital. The government has also set, covering areas such as underwriting, claims and customer service.
No Policy or Premium Changes Announced With the IPO
NSE’s offer documents contain no proposal to change existing insurance policy terms, claims rules or premium rates at the participating insurers. Separately, the Finance Ministry’s September 2 review of public-sector general insurers covered underwriting performance, key performance indicators, digital initiatives and operational issues. The Department of Financial Services asked the insurers to focus on profitable business, reduce incurred claim ratios and improve grievance redressal,
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