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NSE’s highly anticipated Rs 22,569-crore initial public offering saw a 43 per cent subscription on its first day, positioning it as India’s second-largest public issue and attracting significant interest from anchor investors.
Photograph: Francis Mascarenhas/Reuters
Key Points
- The National Stock Exchange of India’s (NSE) Rs 22,569-crore IPO was subscribed 43 per cent on its opening day, receiving bids for 3.83 crore shares against 8.86 crore shares on offer.
- This IPO is India’s second-largest public issue, following Hyundai Motor India’s Rs 27,870-crore offering in 2024, and surpasses LIC’s 2022 IPO.
- Non-institutional investors subscribed 72 per cent, retail investors 44 per cent, and Qualified Institutional Buyers (QIBs) garnered 19 per cent subscription.
- NSE raised Rs 6,746 crore from anchor investors, including LIC, Goldman Sachs, Fidelity, GIC Singapore, Abu Dhabi Investment Authority, and Norges Bank.
- The IPO, an offer-for-sale (OFS) of up to 12.64 crore equity shares, has a price band of Rs 1,700-1,785 per share, valuing NSE at up to Rs 4.42 lakh crore.
The mega Rs 22,569-crore initial public offering of NSE opened for subscription on Thursday, with the issue getting subscribed 43 per cent on the first day of bidding.
The offering is India’s second-largest public issue after Hyundai Motor India’s Rs 27,870-crore IPO in 2024.
Subscription Details and Investor Interest
The NSE IPO received bids for 3.83 crore shares against 8.86 crore shares on offer, as per data available with the exchanges.
The category for non-institutional investors was subscribed 72 per cent, and the retail portion was booked 44 per cent.
The quota for Qualified Institutional Buyers (QIBs) garnered 19 per cent subscription.
The NSE on Wednesday raised Rs 6,746 crore from anchor investors, including state-owned Life Insurance Corporation of India (LIC), Goldman Sachs and Fidelity.
Additionally, sovereign wealth funds GIC Singapore, Abu Dhabi Investment Authority (ADIA) and Norges Bank, as well as Eastspring and HSBC Global Asset Management also participated in the anchor round.
IPO Structure and Valuation
The IPO comprises an offer-for-sale (OFS) of up to 12.64 crore equity shares by existing shareholders.
The exchange has fixed a price band of Rs 1,700-1,785 per equity share for the IPO.
It will command a valuation of up to Rs 4.42 lakh crore at the upper end of the price band.
The issue will close on September 21.
The reduction in the OFS size from the earlier planned 14.9 crore shares has brought down the overall issue size from the initial estimate of around Rs 30,000 crore.
At the lower end of the price band, the issue is estimated at around Rs 21,494 crore, while at the upper end it would amount to around Rs 22,569 crore.
Market Significance and Future Outlook
The IPO surpassed the Rs 21,000-crore offering of LIC in 2022, but remains below Hyundai Motor India’s record public offer.
Since the offering is entirely an OFS, the proceeds from the share sale will accrue to the existing shareholders and not to the NSE.
The public issue marks a significant milestone for the NSE, whose listing plans had remained stalled for nearly a decade amid regulatory hurdles, including those linked to the co-location controversy.
NSE is expected to make its market debut on September 24.
