2 hrs ago
NSE IPO Begins as Selling Shareholders’ Stocks Gain Upward
The National Stock Exchange of India has started its initial public offering, or IPO.
Some companies that already own NSE shares are selling part of their holdings.
Their stock prices rose after the IPO began.
New India Assurance was up the most among the companies discussed, rising 6.91%.
State Bank of India is also selling shares, along with its subsidiary SBI Capital Markets.
Many brokerages said investors should consider subscribing to the IPO.
Chola Securities and Religare Broking were more cautious and rated it neutral.
Angel One said NSE looked cheaper than listed rival BSE based on price-to-earnings ratios.
Angel One also warned that regulatory changes could temporarily affect derivatives trading volumes.
New India Assurance shares rose 6.91% to Rs 196.91 as the NSE IPO began.
State Bank of India gained 0.83%, while GIC Re advanced 1.57% and Bank of Baroda rose 0.40%.
New India Assurance plans to sell up to 10,500,000 NSE shares in the issue.
State Bank of India and its arm SBI Capital Markets plan to sell up to 15,969,410 and 8,780,590 shares, respectively.
Several brokerages recommended subscribing, while Chola Securities and Religare Broking gave the IPO a neutral rating.
- Who
- The National Stock Exchange of India, its selling shareholders, and brokerages covering the IPO.
- What
- The NSE IPO began, while several NSE shareholders’ stocks gained and brokerages issued recommendations.
- Where
- India’s capital markets; a specific location was not stated.
- When
- At 10 am, as reported in the article.
- Why
- Selling shareholders are offering NSE shares, while investors are assessing the company’s valuation, market position, and potential regulatory risks.
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Neutral View
IPO valuation
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Angel One said the issue was attractively valued relative to BSE and recommended subscribing.
Neutral View
Chola Securities and Religare Broking assigned a neutral rating rather than recommending subscription.
Growth outlook and risks
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Supportive brokerages pointed to NSE’s dominant market position, higher revenue and profitability, strong equity-derivatives share, and structural growth in Indian capital markets.
Neutral View
Angel One acknowledged near-term regulatory headwinds to derivatives volumes, which could affect the outlook.
Key facts
- New India Assurance share move
- Up 6.91% at Rs 196.91 at 10 am.
- New India Assurance NSE sale
- Plans to sell up to 10,500,000 NSE shares.
- State Bank of India share move
- Up 0.83% at Rs 999.30.
- State Bank of India NSE sale
- Plans to sell up to 15,969,410 NSE shares.
- SBI Capital Markets NSE sale
- Plans to sell up to 8,780,590 NSE shares.
- Other reported share moves
- GIC Re rose 1.57% to Rs 343.05, while Bank of Baroda gained 0.40%.
- Valuation comparison
- Angel One cited a post-issue price-to-earnings ratio of 35.4 times for NSE at Rs 1,785, versus 54.2 times for BSE.
Quotes
Angel One
Brokerage firm that issued a recommendation on the NSE IPO
“NSE’s dominant market position, significantly higher revenue and profitability, strong market share in equity derivatives, and long-term structural growth in Indian capital markets provide further comfort.”
businesstoday.in
Sources
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