Indian Bank has announced plans to divest up to 15 lakh equity shares in the National Stock Exchange of India (NSE) through an Offer for Sale (OFS) as part of the exchange's proposed Initial Public Offering. According to the latest regulatory filing under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the proposed stake sale represents 17.91% of Indian Bank's shareholding in NSE and remains subject to requisite regulatory approvals. The bank confirmed that it is tendering its NSE shares in the offer for sale as part of the proposed NSE IPO, with no further details of buyers specified at this stage.
As reported in the latest regulatory filing, Indian Bank executed the consent letter on September 9, 2026, with the stake sale expected to be completed by the end of September 2026, on an indicative basis. The transaction does not fall within the ambit of related party transactions and is not outside a Scheme of Arrangement. According to the disclosure, consideration for the shares will be received only after the OFS process is completed. The filing was signed by Dina Nath Kumar, AGM and Company Secretary, and addressed to the Vice Presidents of the National Stock Exchange of India Ltd and BSE Ltd. The sale is particularly significant as it will monetise part of Indian Bank's holding in NSE ahead of the exchange's much-awaited listing.
According to the latest regulatory disclosure, Indian Bank received a dividend of ₹29,31,25,000 from NSE for the financial year 2025-26. The bank's decision to divest its stake in the stock exchange comes as part of the broader NSE IPO process, which will involve multiple stakeholders divesting their holdings in the exchange. Since this is an OFS, the proceeds from the share sale will go to the selling shareholder, Indian Bank, and not to NSE. The transaction is pending regulatory clearances before proceeding.
Shares of Indian Bank closed at ₹851.4 on the NSE on September 9, 2026, down ₹8.50, or 0.99%, from the previous close. The stock trades under the symbol INDIANB on NSE and scrip code 532814 on BSE. The market movement occurred on the same day as the regulatory filing was made, reflecting investor reaction to the divestment announcement. The bank's shares are expected to hog the limelight on Thursday, September 10, as the state-run lender has proposed to sell up to 15 lakh equity shares of the National Stock Exchange of India through an offer for sale as part of NSE's proposed IPO.
The proposed divestment comes amid broader developments in the NSE IPO market. According to reports, the size of the National Stock Exchange IPO may shrink with the OFS likely to be cut to 5.2%-5.5%, from the 6% planned earlier, as some shareholders have backed out of the sale. The reduced OFS could bring down the overall issue size to ₹25,000-₹27,000 crore, compared with the earlier estimate of ₹30,000 crore. The IPO price band is expected to be in the range of ₹1,700-₹1,785 per share, against an earlier estimated ₹2,000 per share. The NSE IPO is likely to open for public subscription on September 18 and close on September 22, with shares likely to be listed on September 25.
