The National Stock Exchange’s (NSE) initial public offering closed on Monday with an overall subscription of 5.7 times, led by strong demand from qualified institutional buyers (QIBs) and non-institutional investors (NIIs).
The IPO received bids for 504.99 million shares worth Rs 90,140 crore against 88.64 million shares worth Rs 15,823 crore on offer.
Retail investors bid for 60.53 million shares worth Rs 10,805 crore against 44.10 million shares worth Rs 7,872 crore on offer, translating into a subscription of 1.37 times. In value terms, NSE attracted the third-highest retail bids for an Indian IPO, after Reliance Power and LG Electronics, according to data from Prime Database.
Institutional demand was particularly strong, with the QIB portion subscribed 12.68 times. QIBs bid for 319.72 million shares worth Rs 57,069 crore against 25.21 million shares worth Rs 4,500 crore on offer.
Foreign portfolio investors (FPIs) accounted for the largest share of QIB demand, bidding for 140.32 million shares. Domestic financial institutions, including banks and insurers, bid for 67.96 million shares, while mutual funds bid for 54.08 million shares.
The NII portion was subscribed 6.55 times, attracting bids for 123.71 million shares worth Rs 22,082 crore against 18.90 million shares worth Rs 3,374 crore on offer.
The Rs 2-10 lakh NII category was subscribed 4.09 times, with bids for 25.74 million shares against 6.3 million shares on offer. HNIs accounted for 24.74 million shares.
Demand was stronger in the above-Rs 10 lakh NII category, which was subscribed 7.78 times. Investors bid for 97.97 million shares worth Rs 17,488 crore against 12.60 million shares worth Rs 2,249 crore on offer. HNIs accounted for 83.92 million shares.
The employee portion was subscribed 2.38 times, receiving bids for 1.03 million shares worth Rs 184 crore against 0.43 million shares worth Rs 77 crore on offer.
At Rs 22,561 crore, NSE’s IPO is the second-largest in the Indian market after Hyundai Motor India. The issue is entirely an offer for sale, with shareholders including State Bank of India, SBI Capital Markets, Bank of Baroda and Stock Holding Corporation of India selling stakes.
NSE had raised Rs 6,746 crore from anchor investors ahead of the issue. Its shares are expected to list on the BSE on September 24.