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NSE IPO Expected to List Thursday as Grey Premium Falls
The National Stock Exchange offered shares to the public in a large IPO.
Many investors applied, and the issue received more than five times as many bids as shares available.
Big institutional investors showed the strongest interest.
The shares are expected to begin trading on Thursday, 24 September, at 10:00 IST.
In unofficial grey-market trading, the shares were estimated at about ₹1,866, compared with an IPO price of ₹1,785.
However, the grey-market premium has fallen considerably from ₹285 to ₹81 over 20 sessions.
Analysts expect only small gains when the shares list.
They also believe the company could be attractive over the long term, although trading volumes and regulatory changes create risks.
The ₹22,569-crore NSE IPO was subscribed 5.71 times, with bids for 50.58 crore shares against 8.86 crore shares offered.
The QIB portion was subscribed 12.68 times, while NII and retail portions received 6.55 times and 1.39 times subscription, respectively.
The IPO’s grey market premium stood at ₹81, implying an estimated listing price of ₹1,866, or 4.54% above the ₹1,785 upper issue price.
Analysts expect limited listing gains but see long-term support from NSE’s market leadership, scale, cash generation and valuation relative to BSE.
The offer is an Offer for Sale, so proceeds will go to selling shareholders rather than the National Stock Exchange.
- Who
- The National Stock Exchange, investors, and analysts including Shivani Nyati and Mahesh M. Ojha.
- What
- The NSE IPO is expected to list, with the grey market indicating a possible price of about ₹1,866.
- Where
- On Indian stock exchanges, with the article referring to a BSE debut.
- When
- The listing is likely on Thursday, 24 September, at 10:00 IST; allotment was finalized on Tuesday, 22 September.
- Why
- The IPO follows strong investor demand, while analysts are assessing NSE’s market position, valuation and risks.
Positive investment case
Risk and valuation concerns
Listing and long-term outlook
Positive investment case
Analysts expect minor listing gains and see long-term support from NSE’s dominant market position, integrated business model, strong cash generation and valuation discount to BSE.
Risk and valuation concerns
The expected listing gain is modest, and fresh investors may be better served by waiting until the stock stabilizes and establishes a more sustainable valuation.
Business risks
Positive investment case
NSE’s scale, technology, clearing infrastructure and high entry barriers provide multiple revenue streams and support its competitive position.
Risk and valuation concerns
Nearly 79% of revenue is linked to trading activity, making earnings sensitive to market volumes, regulatory changes and NSE’s declining share in index options.
Grey-market signal
Positive investment case
The current premium still implies a listing above the ₹1,785 upper issue price.
Risk and valuation concerns
The premium has fallen from ₹285 to ₹81 over 20 sessions, indicating weakening grey-market sentiment and potentially more limited listing gains.
Key facts
- Issue size
- ₹22,569 crore
- Overall subscription
- 5.71 times
- QIB subscription
- 12.68 times
- IPO price band
- ₹1,700–₹1,785
- Current grey-market premium
- ₹81
- Estimated listing price
- ₹1,866, or 4.54% above the upper IPO price
- Offer structure
- Offer for Sale; proceeds go to existing selling shareholders
Quotes
Shivani Nyati
Head of Wealth at Swastika Investmart
“Our pre-listing view is Subscribe, with minor listing gains expected. However, the IPO remains suitable as a long-term investment play, supported by NSE’s strong market position, scale and relative valuation advantage”
livemint.com
Sources
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