The National Stock Exchange of India (NSE) launched its initial public offering, which is an offer-for-sale from existing shareholders and not a new capital raise for the exchange. The IPO is set to be India's third-largest ever, with a valuation of $46 billion based on a price band of 1,700 to 1,785 Indian rupees ($17.72 to $18.60). This valuation is 15% to 20% lower than initial targets and 40% lower than prior private valuations, reflecting some investor caution due to declining derivative trading volumes.
The subscription for the IPO began with anchor investor bidding, followed by open subscriptions for retail investors from Thursday, September 17, and closing on September 21. Ahead of the public issue, NSE raised approximately $809 million (Rs 6,746 crore) from anchor investors, including LIC, Norway's Government Pension Fund, and the Monetary Authority of Singapore, attracting over 150 participants. LIC was the largest anchor investor, contributing around $55.8 million (Rs 465 crore).
By Day 2, the IPO was subscribed 1.26 times overall, with qualified institutional buyers (QIBs) at 1.59 times, non-institutional investors (NIIs) at 1.89 times, and retail investors at 81%. The overall subscription reached 26% by Thursday afternoon, with the employee portion at 65%, retail at 30%, NII at 38%, and QIBs at 11%. The shares are scheduled to list on September 24, with the allotment finalized by September 22. The grey market premium (GMP) was around $0.58 (Rs 48) on the final day of bidding, representing about 2.7% over the issue price. The minimum investment for retail investors was $171.12 (Rs 14,280) for a lot of eight shares.
The IPO is entirely an offer-for-sale, meaning proceeds go to selling shareholders like State Bank of India, Canada Pension Plan Investment Board, and New India Assurance, rather than to NSE. The exchange aims for a 100% free float after the lock-in period. Analysts have largely given positive views, though some, like Religare, have adopted a 'Neutral' stance. NSE's dependence on equity derivatives is a key factor for investors, as options trading accounted for about 60% of its operating profit in FY26.
