6 hrs ago
Experts See Limited NSE IPO Fireworks, Strong Long-Term Potential
The National Stock Exchange is offering its shares to the public.
The offering is very large, worth Rs 22,561 crore.
Experts do not expect the share price to jump dramatically on its first trading day.
One reason is that the grey-market premium has fallen.
Some early investors may also sell their shares after their lock-in period ends.
However, the experts believe India’s stock markets may grow over time.
They say NSE could benefit because it handles many trades and has strong finances.
Their overall view is cautious in the short term but positive for long-term investors.
The Rs 22,561 crore NSE IPO is described as India’s second-largest primary-market issue.
Analysts say sharply lower grey-market premium and the large issue size could limit listing-day gains.
Deven Choksey views NSE as a long-term buy because of market-capitalization growth and exchange cash generation.
Ambareesh Baliga expects possible selling pressure after pre-IPO investor lock-ins expire, but sees positive returns over two to four years.
Mohit Mangal and Arun Kenjriwal cite NSE’s market leadership, earnings recovery prospects and India’s expanding capital markets as long-term strengths.
- Who
- The National Stock Exchange and four market experts: Deven R Choksey, Ambareesh Baliga, Mohit Mangal and Arun Kenjriwal.
- What
- The Rs 22,561 crore NSE IPO is making its stock-market debut, with experts assessing its valuation and investment prospects.
- Where
- On India’s stock market, described in the article as D’Street.
- When
- The article refers to the debut in 2026 and says the ceremonial bell is scheduled for 10 a.m.
- Why
- The IPO is attracting attention because of its large size, weakened grey-market premium, possible short-term selling pressure and expected long-term growth in India’s capital markets.
Short-Term Caution
Long-Term Optimism
Listing-day performance
Short-Term Caution
The large issue size, falling grey-market premium and fair valuation may limit an immediate price jump.
Long-Term Optimism
A limited listing gain is less important to investors focused on NSE’s longer-term business prospects.
Near-term selling pressure
Short-Term Caution
Pre-IPO investors could book profits after the lock-in period expires, creating an overhang on the shares.
Long-Term Optimism
Any short-term selling pressure may be outweighed over two to four years by growth in Indian markets.
Business outlook
Short-Term Caution
Regulatory headwinds and recent periods of weaker growth could create short-term uncertainty.
Long-Term Optimism
NSE’s leadership in cash, futures and options, strong EBITDA margins and expected FY28 earnings recovery support a long-term buy case.
Key facts
- IPO size
- Rs 22,561 crore
- Market position
- The article describes NSE as India’s largest stock exchange.
- Primary-market ranking
- The IPO is described as the second-largest issue in India’s primary-market history.
- Short-term expectation
- Analysts generally expect limited listing-day gains rather than major fireworks.
- Potential overhang
- Pre-IPO investors may sell after the six-month lock-in period expires.
- Expected earnings recovery
- Mohit Mangal expects an earnings bounceback from FY28 onwards.
- Long-term outlook
- Experts link NSE’s prospects to market leadership, strong margins, cash generation and expanding capital markets.
Quotes
Ambareesh Baliga
Market veteran and investment commentator
“I think NSE is growing at the rate of 15% annually. India’s market cap currently is 5 trillion dollars. And this market cap is expected to become 15 trillion dollars in coming years. With that kind of situation emerging, the exchange businesses is going to remain in favour because they are cash-generating machines.”
financialexpress.com
“You cannot write off a company like this just because growth was low for a few quarters. We expect a bounceback in earnings FY28 onwards.”
financialexpress.com
Sources
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