The initial public offering (IPO) of the National Stock Exchange of India (NSE) witnessed strong investor interest on the second day of bidding, with the issue getting fully subscribed by 2:45 pm on Friday, showed data available on the exchange’s website.
The ₹22,569-crore IPO received bids for 8.82 crore shares against the 8.86 crore shares offered. Non-institutional investors led the demand, subscribing to their reserved portion 1.35 times, while qualified institutional buyers subscribed 1.32 times. The retail investor category received bids for 65% of the shares allocated to it.
NSE IPO attracts institutional demand
In the grey market, NSE shares have seen a decline in the grey market premium (GMP). The latest premium indicates a possible listing gain of nearly 6%, according to InvestorGain. However, GMP is not an official market indicator and does not guarantee the listing price or returns.
The exchange had raised ₹6,746.2 crore from anchor investors on September 16, with several leading domestic and global institutions participating. Life Insurance Corporation of India (LIC) emerged as the largest anchor investor.
NSE has set a valuation target of ₹4.42 lakh crore through the IPO. At this valuation, the exchange could enter the list of India’s top 15 companies by market capitalisation.
Offer consists entirely of share sale by existing investors
The IPO opened for public subscription on September 17 and will remain open until September 21. The issue comprises an offer-for-sale (OFS) of 12.64 crore equity shares by existing shareholders, with a price band fixed at ₹1,700-1,785 per share.
Since the IPO is entirely an OFS, NSE itself will not receive any proceeds from the issue. The funds raised, after deducting expenses, will go to the selling shareholders.
The exchange has also reserved shares worth ₹70 crore for employees, who will receive them at a discount of ₹170 per share to the final issue price.
The share allotment process is expected to be completed on September 22, while NSE shares are likely to begin trading on the BSE from September 24.