NSE IPO Day 1: Subscription reaches 0.43 times, GMP signals 8% listing gain

The much-awaited NSE IPO ended its first day of bidding, receiving moderate investor response, as the issue was subscribed 0.43 times. Widely regarded as the country’s third-largest issue of Rs 22,652 crore offer was undersubscribed in all categories.

Most traction was witnessed in the employees quota, which was subscribed 0.97 times, while the qualified institutional buyers segment received minimal response, being booked 0.19 times. The issue’s price band has been fixed at Rs 1,700 to Rs 1,785, and the IPO is entirely an offer for sale, as investors will offload 12.64 crore shares of Rs 1 each.

So far, the NSE IPO has received 11.99 lakh applications and bids for 3.83 crore shares against its demand of 8.86 crore shares, taking its subscription to 0.43 times. The employees’ portion, which is being offered at a discount of Ra 170 per share, has been booked 0.98 times.

The QIBs segment has been subscribed 0.19 times, and the non-institutional investor segment saw active participation, being booked 0.72 times. The retail applicant category was subscribed 0.44 times.

The table below represents how the NSE IPO is stacking up against the general bidding interest:

As per various trackers, the shares of NSE are trading in a volatile direction in the unlisted markets. Its latest grey market premium stood at Rs 147, suggesting a listing price of Rs 1,932, based on the upper end of the price band.

This reflects gains of 8.24% per share. However, investors must know that GMP does not determine the actual listing price and fluctuates based on market mood and conditions.

The NSE IPO opened its bidding window on September 17 and will close for subscription on September 21. I. Its share allotment process is likely to be completed by September 22, and bidders are likely to receive their due shares along with the refunds by September 23.

NSE is likely to list on BSE on September 24.

Kotak Mahindra Capital is the book-running lead manager of the IPO, and MUFG Intime India is the registrar to the issue. Investors can bid for a minimum of 8 shares and in lots thereafter.