The much-awaited initial public offering of the National Stock Exchange (NSE) opens for public subscription on September 17, allowing investors to participate in one of India’s biggest IPOs. The issue will remain open until September 21, with NSE shares scheduled to list on BSE on September 24.
The IPO has been priced in the range of Rs. 1,700 to Rs. 1,785 per share and is entirely an offer for sale (OFS), meaning the proceeds will go to existing shareholders rather than the exchange. At the upper end of the price band, the issue is valued at about Rs. 22,569 crore.
Retail investors can bid for a minimum of eight shares, requiring an investment of Rs. 14,280 at the upper end of the price band. The issue has reserved up to 50% of the net offer for qualified institutional buyers, 15% for non-institutional investors and 35% for retail investors.
The IPO follows a reduction in the number of shares being offered compared with NSE's earlier plans. The final offer comprises up to 12.64 crore shares through the OFS route.
Anchor investors were allocated shares worth about Rs. 6,746 crore on September 16, priced at Rs. 1,785 apiece. LIC was among the largest anchor investors, while other participants included Norway’s Government Pension Fund, Abu Dhabi Investment Authority and Fidelity.
The grey market has been indicating a premium over the IPO's upper price band. Business Standard reported a GMP of up to 9%, with NSE shares quoted around Rs. 1,945, implying a premium of Rs. 160 over Rs. 1,785.
However, GMP is an unofficial market indicator and can change before listing. It should not be treated as a guaranteed listing gain or a substitute for evaluating the company's business and valuation.
Brokerage views are not uniform. Choice Broking, Ventura and Swastika have issued “Subscribe” recommendations, citing NSE's dominant position in cash equities and equity derivatives, along with its businesses in clearing, indices, market data and analytics.
Religare Broking, meanwhile, has taken a ‘Neutral’ view. It highlighted NSE's exposure to trading activity, transaction charges and regulatory changes as factors investors need to consider. The brokerage also noted that a slowdown in market volumes could affect earnings.
"There is no other way to own Indian market infrastructure at this scale, and a first listing rarely comes cheap. Accordingly, we assign a rating of SUBSCRIBE," Choice Broking said.
Also Read: SS Retail IPO Day 1: GMP Signals 30% Premium
The allotment is expected to be finalized on September 22, with shares likely to be credited on September 23. NSE's listing is scheduled for September 24. For investors assessing the IPO, the key considerations include NSE's market position, valuation, dependence on trading volumes, regulatory environment, and the fact that the issue is entirely an OFS.