New Delhi, Sep 21: The initial public offering of the National Stock Exchange of India (NSE) attracted more than $10 billion in bids by the close of subscription on Monday, reflecting strong investor interest in one of India’s most closely watched market debuts.
The Rs 22,569-crore IPO received bids for about 50.58 crore shares, representing 5.71 times the 8.86 crore shares on offer, according to exchange data. The issue is India’s second-largest IPO after Hyundai Motor India’s offering in 2024.
Qualified institutional buyers drove demand, subscribing to nearly 12.7 times the shares reserved for them. The non-institutional investor portion was subscribed about 6.55 times, while the retail portion was subscribed around 1.39 times, according to the data cited in the report.
The IPO marks the culmination of a decade-long effort by NSE to enter the public markets. The exchange has set a price band of Rs 1,700 to Rs 1,785 per share.
Strong Institutional Interest
The strong response from institutional investors comes despite a slowdown in derivatives trading following regulatory and taxation changes. NSE remains India’s dominant stock exchange, accounting for a large share of activity in both the cash and options markets.
The exchange’s investor base has also expanded significantly in recent years, supporting expectations of continued growth in India’s capital markets.
Market participants are also watching NSE’s business beyond derivatives, including other segments that could contribute to revenue growth over the longer term.
Grey Market Signals Moderate Premium
Trading in the unofficial grey market has indicated a relatively modest premium ahead of the listing. Recent reports have put the premium at around 2-5 per cent, although grey-market indications are unofficial and do not guarantee the actual listing price.
NSE’s proposed valuation at the upper end of the price band is around $46 billion. The exchange is expected to begin trading on September 24, subject to the applicable listing process.
The NSE issue comes amid heightened activity in India’s primary market, with several large companies preparing to tap investors. The strong subscription also highlights continued institutional participation in India’s equity markets despite recent volatility and regulatory changes affecting derivatives trading.
The final listing price will depend on market conditions and investor demand at the time of debut.
