The much-awaited National Stock Exchange of India (NSE) initial public offering (IPO) opened for subscription on Thursday, offering investors a chance to participate in one of India's biggest market listings.
The IPO opened at 10 am and will remain available for subscription until September 21. The price band has been fixed at Rs 1,700 to Rs 1,785 per share.
At the upper end of the price band, the issue is expected to raise around Rs 22,600 crore. This would make it the second-largest IPO in India, behind Hyundai Motor India’s 2024 issue, which raised Rs 27,900 crore.
NSE IPO sees early demand
The issue attracted bids soon after the opening bell. As per BSE data cited in the report, investors had bid for 81,99,336 shares against 8,86,42,911 shares on offer by 10:16 am on Thursday.
The non-institutional investor category was subscribed 15 per cent, while the retail portion saw 12 per cent subscription at that stage.
The valuation is another key factor for investors. At the upper price band, NSE would be valued at around 42.9 times its earnings for the financial year ended March.
That compares with a lower valuation multiple for some major global listed exchanges, while domestic rival BSE trades at a higher earnings multiple, according to the research cited in the report.
What analysts are saying
Angel One has recommended subscribing to the NSE IPO, pointing to the exchange's market position, profitability and strong presence in equity derivatives.
"At the upper price band of ₹1,785, NSE is valued at a post-issue P/E of 35.4x, compared with BSE's P/E of 54.2x, making the issue attractive relative to its key listed peer. NSE's dominant market position, significantly higher revenue and profitability, strong market share in equity derivatives, and long-term structural growth in Indian capital markets provide further comfort," said a report from Angel One, reported Hindustan Times.
The brokerage also flagged regulatory concerns around derivatives volumes but said the valuation and NSE's competitive position remained important considerations.
"Despite near-term regulatory headwinds to derivatives volumes, we believe the valuation offers a favourable entry point given the company's strong competitive position and earnings potential. We recommend Subscribe for the IPO," it added.
For investors tracking the issue, subscription figures, valuation and the grey market premium (GMP) are among the key indicators to watch as bidding progresses.