Mumbai, June 18 -- As state-owned banks and insurers cash out through the National Stock Exchange's roughly Rs.30,000-crore initial public offering, its largest shareholder, Life Insurance Corp. of India, is holding on to its 10.72% stake, according to the draft papers filed with the market regulator.

As per the draft red herring prospectus filed with the Securities and Exchange Board of India (Sebi) on 17 June, among state-backed entities, State Bank of India is the largest selling shareholder, offering up to 24.75 million shares in the IPO.

Bank of Baroda, Stock Holding Corp, PSU insurers GIC Re and The New India Assurance Company have offered around 11 million shares each, while National Insurance Co and United India Insurance Co are...