NSE IPO Day 2: National Stock Exchange of India IPO, India’s second largest till date, enters its second day of subscription with a grey market premium (GMP) of around 8%, pointing to expectations of a moderate gain when the shares list.On the first day, the issue was subscribed 43% overall, with bids received against the 8.86 crore shares on offer. Retail investors subscribed to 44% of the 4.41 crore shares reserved for them.The IPO is an offer for sale (OFS) of 12.64 crore shares, which means that NSE will not receive any money raised through the issue. The proceeds will go to the existing shareholders selling their stakes. The price band has been set at Rs 1,700-1,785 per share, with a lot size of eight shares.Also Read | NSE IPO: Why did India’s second largest initial public offering not get fully subscribed on Day 1?At the upper end of the price band, a retail investor will need to invest a minimum of Rs 14,280 to bid for the subscription. The post-issue market capitalisation is estimated at around Rs 4,41,788 crore. The issue closes on September 21, while the shares are expected to be listed on BSE on September 24.
NSE IPO subscription status
Demand remained steady on the first day, with the IPO receiving subscriptions for 43% of the 8.86 crore shares on offer.
- Retail Individual Investors (RIIs) subscribed to 44% of the 4.41 crore shares reserved for them.
- Non-Institutional Investors (NIIs) subscribed to 72% of the 1.89 crore shares allocated to the category.
- Qualified Institutional Buyers (QIBs) subscribed to 19% of the 2.52 crore shares reserved for them.
NSE IPO GMP today
The NSE IPO is commanding a grey market premium of around Rs 142, or 8%, over the upper end of its Rs 1,785 price band. Based on this GMP, the implied listing price is around Rs 1,927 per share, indicating expectations of a moderate listing gain.
NSE IPO: What brokerages are saying
Brokerages have largely taken a positive view of the National Stock Exchange’s IPO. Thomas J. Priju, Portfolio Manager, Karma Capital sees NSE as a structural growth story, underpinned by the continued evolution of India’s capital markets.“In our view, the exchange has the potential to emerge as a steady compounder over the long term and can be a meaningful long-term holding in a portfolio. In the near term, a resolution of the issues around the new closing auction mechanism (CAS) could provide an additional catalyst for the stock. Over a much longer horizon, as NSE’s role in India’s financial markets continues to deepen, the business is likely to command a valuation multiple more akin to that of a public utility,” he says.Also Read | NSE IPO opens for subscription: From GMP, market cap to status & global comparison – top 10 things to knowHe also believes that there could be some selling on the listing day as certain pre-IPO investors, including eligible AIFs, can monetise their holdings.“Other pre-IPO shareholders remain subject to a six-month lock-in period. This could create some temporary supply and provide a buying opportunity for long-term investors. The IPO saw 43% subscription on the first day, with institutional participation relatively muted at this stage. Given that QIB participation typically builds towards the end of the issue period, we would expect subscription levels to strengthen as the IPO progresses,” he adds.Analysts point to NSE’s market leadership, strong margins, debt-free balance sheet and expanding investor base as factors supporting the long-term investment case. They also see the IPO as an opportunity to gain exposure to India’s dominant market infrastructure company.However, the valuation remains a consideration. At 42.9 times FY26 earnings, the issue is not inexpensive, while NSE’s earnings are closely linked to trading activity, particularly options. A GMP of 8% indicates positive demand, but does not suggest excessive enthusiasm.(Disclaimer: Recommendations and views on the stock market, or any other asset classes or personal finance management tips given by experts and analysts are their own. These opinions do not represent the views of The Times of India.)
