IPO’s Today: SBI, Bank of Baroda Eye Multibagger Gains from NSE IPO OFS; LIC Holds Stake

The IPO market is once again in focus as the much-talked-about NSE initial public offering moves through its offer-for-sale phase. Major state-backed financial institutions like State Bank of India and Bank of Baroda are drawing attention as potential big winners from early investment in the exchange’s unlisted journey. At the same time, LIC has chosen to hold its position, signaling long-term confidence in the asset. The activity is also stirring broader interest across the IPO ecosystem, as investors track valuation expectations and institutional selling patterns closely.

IPO SBI Bank of Baroda NSE OFS selling pressure and valuation buzz

The current IPO related OFS in the NSE has brought several large institutional names into the spotlight. According to market tracking reports, entities like SBI, Bank of Baroda, GIC Re, Tata Investment Corporation, and LIC are connected either as past investors or stakeholders in the exchange structure.

Key highlights from the ongoing OFS interest include:

• SBI and Bank of Baroda are seen among early institutional investors with exposure built over years, with market participants estimating potential gains running into multiple times depending on entry valuation levels
• NSE’s unlisted valuation is widely discussed in the range of several lakh crore rupees, with investor sentiment driven by strong trading volumes and monopoly-like exchange positioning
• OFS activities are estimated to involve stakes worth thousands of crores collectively, creating liquidity opportunities for early holders
• As highlighted in a LiveMint market report, selling interest is balanced by strong long-term holding sentiment from select institutions

The IPO is attracting such attention because of NSE’s dominant market share in equity derivatives, which is estimated at over 90 percent in India, making it one of the most profitable exchange structures globally.

IPO SBI Bank of Baroda multibagger gains outlook from early entry pricing

Market watchers believe SBI and Bank of Baroda could be sitting on significant unrealised gains due to early-stage investment valuations made years ago. These banks entered the NSE ecosystem when valuations were significantly lower compared to current unlisted market pricing.

Investor sentiment points to:

• Potential multibagger returns depending on the final IPO listing valuation
• Strong retail and institutional demand is expected once NSE lists publicly
• Historical compounding of exchange profitability supporting valuation upside
• Banking sector exposure to financial infrastructure is gaining renewed attention

However, analysts also caution that final IPO pricing and regulatory approvals will be key deciding factors for actual realised gains.

IPO LIC holding strategy and long-term positioning in the NSE stake

Unlike partial sellers, LIC continues to hold its stake, reflecting a long-term investment approach. The insurer’s decision signals confidence in NSE’s earnings strength, which is supported by consistent transaction fee income and high trading participation.

LIC’s holding pattern suggests:

• Preference for steady long-term capital appreciation over short-term exit gains
• Confidence in India’s capital market expansion trajectory
• Stable dividend and earnings visibility from exchange business models

Final market analysis: IPO sentiment and institutional positioning shift

The current IPO activity around NSE reflects a clear divide between profit booking and long-term holding strategies. Institutions like SBI and Bank of Baroda are seen evaluating partial exit opportunities, driven by strong unlisted valuations that may have already delivered multi-fold returns. At the same time, LIC’s decision to stay invested highlights confidence in the structural growth of India’s capital markets. As the NSE IPO progresses, valuation discovery will be the key trigger for further movement. Investors are closely watching pricing signals, regulatory timelines, and demand from institutional buyers, which will ultimately decide the scale of listing gains and long-term market impact.

Disclaimer

The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.