2 hrs ago
LIC Leads NSE IPO Bidding as Institutional Demand Surges
The National Stock Exchange of India offered shares to investors in an IPO.
Large institutions showed much more interest than individual investors.
The institutional portion was subscribed nearly 12.7 times.
The retail portion was subscribed about 1.3 times.
Life Insurance Corporation of India was reported to be the biggest bidder.
LIC also invested Rs 400 crore in the IPO’s anchor round.
Overall, investors bid for about 5.7 times the available shares.
The IPO closed on September 21, and share allotment was being held afterward.
Some investors remained concerned about NSE’s valuation and possible slower derivatives trading.
LIC reportedly applied for NSE IPO shares worth Rs 4,500 crore, while its anchor investment totaled Rs 400 crore.
Institutional investors subscribed nearly 12.7 times their reserved portion, compared with about 1.3 times for retail investors.
The $2.4-billion IPO received bids worth over Rs 90,300 crore, or around 5.7 times the shares offered.
NSE raised Rs 6,746.18 crore from 189 anchor investors at Rs 1,785 per share.
The IPO attracted more than 38.4 lakh applications, with allotment being conducted after the issue closed on September 21.
- Who
- The National Stock Exchange of India, Life Insurance Corporation of India, institutional investors and retail investors.
- What
- NSE completed a $2.4-billion IPO that attracted strong institutional demand, with LIC reportedly applying for shares worth Rs 4,500 crore.
- Where
- The IPO involved NSE shares and applications could be checked through the registrar, NSE or BSE websites.
- When
- The three-day IPO concluded on September 21; allotment was being conducted afterward. Anchor investment occurred ahead of the public issue on September 16.
- Why
- Institutional investors’ participation was described as reflecting confidence in NSE’s growth prospects, despite concerns about derivatives activity and valuation.
Institutional investors
Retail investors
IPO appetite
Institutional investors
Institutional investors showed strong demand, subscribing nearly 12.7 times their reserved portion and signaling confidence in NSE’s growth prospects.
Retail investors
Retail investors were more cautious, with their reserved portion subscribed around 1.3 times.
Valuation and business concerns
Institutional investors
Large long-term investors participated despite concerns about a possible slowdown in derivatives trading and NSE’s relatively high valuation.
Retail investors
The lower retail participation was consistent with a more measured approach amid those concerns.
Key facts
- Reported LIC application
- Shares worth Rs 4,500 crore
- LIC anchor investment
- Rs 400 crore, or 5.93% of the anchor book
- IPO price
- Rs 1,785 per share
- Anchor investors
- 189 investors; Rs 6,746.18 crore raised
- Institutional subscription
- Nearly 12.7 times the QIB allocation
- Retail subscription
- Around 1.3 times the retail allocation
- Total applications
- More than 38.4 lakh
Sources
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