NSE IPO: Ahead of mega ₹30k cr issue, should you buy SBI, Bank of Baroda shares? What investors should do?

NSE IPO: The other listed entities amongst the selling shareholders of the National Stock Exchange are The New India Assurance Company Ltd. and General Insurance Corporation of India.(Photo: Courtesy AI)AI Quick ReadNSE IPO: After a nearly decade-long wait, the initial public offering (IPO) of the National Stock Exchange (NSE) has finally received approval from the market regulator, SEBI, to launch the much-awaited NSE IPO. According to the NSE IPO DRHP, available on the SEBI website, there are four selling shareholders, who are listed in the Indian stock market.

Those four listed entities are State Bank of India (SBI), Bank of Baroda (BoB), General Insurance Corporation of India, and The New India Assurance Company Ltd. Ahead of the SEBI's nod to the NSE IPO, shares of the New India Assurance Company skyrocketed over 18% on Friday, whereas SBI and BoB shares ended lower on Friday. General Insurance Corporation of India shares edged higher on Friday ahead of the SEBI's approval of the public issue worth ₹30,000 crore.

According to stock market experts, the NSE IPO is an Offer for Sale (OFS) only, meaning the net proceeds of the book-building issue won't go into the NSE's balance sheet but will be reflected in the balance sheets of the NSE's selling shareholders. As SBI and Bank of Baroda, among the selling shareholders, are listed on Indian bourses, the Indian market is expected to react to these two PSU bank stocks on Monday.

On how SBI and Bank of Baroda shares are linked to the NSE IPO, Sandeep Pandey, Co-founder of Basav Capital, said, “SBI and Bank of Baroda are two of the 10 selling shareholders, who have offered their shares in the NSE's initial offer. It is also known that the NSE IPO is completely OFS. This means it is selling shareholders, who will receive the net proceeds, not the NSE. So, after the NSE IPO listing (which is expected in the week of 21st September 2026, reports Reuters), the net proceeds would reflect in the balance sheet of SBI, BoB and the other eight selling shareholders.”

On how the NSE IPO would benefit SBI and Bank of Baroda shareholders, Anuj Gupta, a SEBI-registered market expert, said, “The NSE IPO listing would enable SBI and BoB to have more money in their hands to lend. So, the extra money coming from the NSE IPO is expected to strengthen these PSU banks' financials, especially NIMs. They can use the NSE IPO net proceeds for Capex expansion as well, a development that is good for the company's stocks.”

However, it would be important to know which of these two PSU bank stocks would be the better bet for investors.

On how these two bank PSU stocks look on the technical chart pattern, Mahesh M Ojha, VP — Research & Business Development at KC Securities, said, “Comparing SBI and BoB shares, SBI shares are looking strong on the technical chart and may give strong upside movement in comparison to BoB shares. So, one should buy SBI shares ahead of the NSE IPO launch.”

Mahesh M Ojha said that one can buy SBI shares in the ₹1010 to ₹1016 zone for the targets of ₹1040 and ₹1075. However, he advised investors to maintain a strict stop loss below ₹990.

The KC Securities expert said that Bank of Baroda shares are in the weak zone. One should think of buying BoB shares only after a decisive break above ₹245. On breaking above ₹245, the PSU stock may touch ₹275. He advised BoB shareholders to maintain a strict stop-loss at ₹228 and accumulate only when the stock closes above ₹245.

According to the NSE IPO DRHP, SBI can sell up to 24.75 lakh crore NSE shares, whereas BoB can sell up to 10,986,250 NSE shares.

Disclaimer: This story is for educational and informational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified financial experts before making any investment decisions.

Asit Manohar has nearly two decades of experience in the mainstream media. In this period, he has served esteemed media organisations like NDTV Profit, The Economic Times, and Zee Business. He has been working at LiveMint Digital since April 2021. During these two decades of journey in mainstream media, Asit has mainly covered external affairs, markets and personal finance. However, his earliest beats include railways, SME, MSME, and politics (Congress beat). Some of his features on political, economic, and foreign policy are documented in the parliamentary records. <br><br> While pursuing his MA (Mass Communication, Session 2004-06), Asit began his media career as a stringer at All India Radio in Varanasi. At AIR Varanasi, Asit worked with the Gyanvani, Yuvvani and Vividh Bharti teams. After working for nearly one year at AIR Varanasi, he shifted to print journalism and started working as a stringer for the HT Media Ltd, Varanasi. At HT Media Ltd in Varanasi, he covered the BHU beat. <br><br> Asit has also worked with some brokerage houses. He has worked with Religare Broking and India Infoline, where he assisted the research team in developing and executing trade strategies for intraday cash, F&O, and commodities. <br><br> Asit is a Gold Medalist in MA (Mass Communication) from BHU, Varanasi. He did his BSc. (Hons) in Mathematics from Magadh University, Bodh Gaya. Asit was a National Talent Scholarship holder during his senior secondary studies (1988-91).

Catch all the Business News , Market News , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.

Oops! Looks like you have exceeded the limit to bookmark the image. Remove some to bookmark this image.