LIC, New India Assurance take opposite tacks on NSE IPO

Shares of Life Insurance Corporation of India (LIC) and The New India Assurance Company outperformed the market on Thursday after the National Stock Exchange of India filed draft papers for its IPO, with LIC choosing not to sell and New India planning to offload over 1 crore shares.

Market overview

• Nifty 50 traded about 0.11% lower, indicating a weak broader market tone.
• LIC and New India shares advanced despite declines in several largecap peers.

NSE IPO details

Detail	Value / Description	Context
Offer structure	Up to 14.89 crore shares, face value Re 1	Entirely offer for sale, no fresh issue.
Stake on offer	Around 6% of paid-up equity capital	Represents part exit by existing shareholders.
Indicative IPO size	₹30,000 crore to ₹32,000 crore	Set to be largest IPO in Indian history.
Listing venue	Shares to list on BSE	Mirrors BSE shares listing on NSE.
Selling shareholders (PSUs)	Around 8 crore shares to be divested	Seven PSU shareholders to participate.
New India Assurance sale	Up to 1.05 crore NSE shares	Cost of acquisition ₹0.32 per share.

• IPO follows NSE filing its Draft Red Herring Prospectus with SEBI.
• The process revives a listing plan first initiated in December 2016.

LIC: holding its 10.7% NSE stake

Holder	Stake in NSE	Shares held	Position in portfolio
LIC	10.7%	About 26.5 crore shares	Among top six investments (Mar 2025).

• LIC will not participate in the NSE IPO offer for sale.
• The insurer is retaining its entire NSE stake through the listing.
• LIC views NSE as having long-term value creation potential.
• The holding is notable as a large unlisted exposure in LIC’s portfolio.
• Decision aligns with LIC’s strategy of building sizeable stakes in major Indian companies.

New India Assurance: rally on planned NSE share sale

Metric	Value	Context
Intraday gain	Up to 14.2% to ₹188.50	BSE intraday high on Thursday.
Reported surge	As much as 13.5% in session	Top gainer on Nifty 500.
Current trade level	Around ₹186.4, up 12.8%	Stock up 20% in 2026 year to date.
5-day move	About 28% rise over five sessions	Fifth straight day of gains.
Volume spike	4.1 crore shares vs 20-day avg 2.7 lakh	Indicates heavy trading interest.
NSE shares held for sale	Up to 1.05 crore shares	Face value Re 1 each.
Acquisition cost	₹0.32 per share	Implies potential windfall on listing.
Technical level	Crossed 200-DMA of ₹163.78	Stock now above key moving averages.

• New India is identified as a selling shareholder in NSE’s DRHP.
• The low historical acquisition cost underpins expectations of a windfall.
• Despite the rally, the stock trades over 50% below its bonus-adjusted IPO price of ₹400.
• The company had issued bonus shares in a 1:1 ratio earlier.

LIC share move in a weak market

• LIC shares rose about 2.5% in Thursday trade.
• The gain came while Nifty 50 was down around 0.11%.
• Several largecap peers traded with cuts during the session.
• Buying interest was linked to LIC’s sizeable, retained NSE holding.

NSE financials and market position

Metric	FY24	FY25	FY26	Context
Revenue from operations	₹14,780 crore	N.A.	₹16,601 crore	Steady growth in core business.
Net profit	₹8,305 crore	₹12,188 crore	₹10,302 crore	FY26 PAT down 15% YoY.
Dividend per share	₹18 (FY24, bonus-adjusted)	₹35	₹35	Strong cash returns to shareholders.

• Profit decline in FY26 partly reflects tighter SEBI rules on equity derivatives.
• NSE remains India’s largest exchange by cash market turnover.
• It is also the largest equity derivatives exchange globally by contracts traded in FY26.
• Average 12-14 billion messages processed daily as of March 2026.
• Record 293.85 million trades across segments were executed on 4 June 2024.

NSE scale and investor reach

Metric	Value	Period / Context
Unique registered investors	3.087 crore	As of March 2020.
Unique registered investors	12.91 crore	As of March 2026.
Investor CAGR	26.9%	March 2020 to March 2026.
Fund mobilisation via NSE	₹20.3 lakh crore	FY2026 total.
Geographic reach	Investors in 99%+ of postal codes	As of March 2026.

• NSE highlights proprietary, resilient technology infrastructure in its DRHP.
• The exchange cites a role in democratising capital market access.
• It commands a near-total share of trading volumes in key asset classes.

Technical outlook: New India Assurance

• New India has moved above all key moving averages, including the 200-DMA at ₹163.78.
• The five-session rally has shifted the stock from under its long-term average to above it.
• Despite the move, the stock remains more than 50% below its bonus-adjusted IPO level.

Broader implications for investors

• LIC’s stance signals long-term institutional conviction in NSE’s growth and cash generation.
• New India’s participation highlights the scale of potential gains for early institutional investors.
• The IPO is expected to be a major capital market event and could revive primary market sentiment.

Frequently Asked Questions

How much of NSE is being offered in the IPO?

The NSE IPO is an offer for sale of up to 14.89 crore equity shares, representing around 6% of the exchange’s paid-up equity capital. NSE itself will not receive any proceeds from the issue.

What is LIC doing with its NSE stake in the IPO?

LIC, which holds a 10.7% stake or about 26.5 crore shares in NSE, will not sell any shares in the IPO offer for sale and plans to remain invested for the long term.

Why did New India Assurance shares rally on NSE IPO news?

New India Assurance shares rallied up to about 14% after NSE’s DRHP showed it will sell up to 1.05 crore NSE shares acquired at a cost of ₹0.32 per share, creating expectations of a significant windfall from the listing.