NSE IPO Live Updates: The big band NSE IPO kicks off after nearly a decade-long wait. The Rs 22,561.57 crore issue is one of the largest in India’s primary market history and largely an OFS. The National Stock Exchange issue opens today, September 17 and will stay open till September 21. The bidding time for all categories begins at 9 am and continues till 7 pm on all three days.
The minimum lot size for the NSE IPO has been fixed at 8 shares per application. At the upper end of the price band, investors need to make a minimum investment of Rs 14,280 per lot. Kotak Mahindra Capital is the book running lead manager. MUFG Intime is the registrar of the issue.
After years of anticipation, the National Stock Exchange of India (NSE) is finally preparing to enter the listed market. The exchange, which has grown into one of India's most important market infrastructure institutions, will open its initial public offering (IPO) for investors today, September 17.
The IPO is different from a conventional share sale because NSE itself is not raising fresh capital. The entire issue is an Offer for Sale (OFS), meaning existing shareholders will sell part of their holdings to public investors.
NSE has outlined that the volume and value of transctions are crucial to its business. NSE has mentioned that any significant decrease in the volume and value of transactions could significantly reduce demand for our products, constrain growth, and adversely affect business, financial condition, results of operations, cash flows, and prospects.
The exchange earns revenue based on trades executed on our stock exchange, listing fees from Listed Entities, and fees from ancillary services such as Data Feed & Terminal services, data centre related services, and licensing services.
The transaction charges that they earn are driven principally by the volume of trades executed across our various products, including the cash market, futures, options, mutual funds platform, commodity derivatives, exchange-traded currency derivatives, wholesale debt market and interest rate futures, among others.
Key broking firm Angel One has rated the NSE IPO as 'Subscribe'. According to them, "at the upper price band of Rs 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."
They believe "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."
According to them, "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. "
The National Stock Exchange has allocated 37.79 million shares to marquee anchor investors. The exchange has raised a total amount of Rs 6,746 crore from them at the upper end of the price band at Rs 1,785 per share.
Some of the marquee investors included LIC, the Government Pension Fund Global, Abu Dhabi Investment Authority, Fidelity Funds and the like. Key domestic investors apart from LIC included names like SBI, ICICI Prudential, HDFC, Axis Mutual Fund and Kotak.
According to NSE, it received strong interest from anchor investors. They got total bids of about Rs 1.2 lakh crore from over 150 investors. This is 20x the anchor book size and included foreign institutional investors and global mutual funds across geographies.
This anchor allotment is the third biggest in the history of Indian stock markets. Hyundai Motor India and One97 Communications (parent company of Paytm) were the other larger anchor allotments before this.
Hello and welcome to this special live blog on the NSE IPO. We will get you blow-by-blow updates on this mega offering. Though an OFS, this offer has generated significant investor interest, as it gives an opportunity to own a share of the exchange.
The issue has been priced at Rs 1,700-1,785 per share. This price band offers a significant discount to the going rate of the unlisted share price. Most analysts see the valuation as rich for this mega offering.
Stay tuned for the latest and most important news on the NSE IPO. We will get you updates, views and the most relevant news on the IPO through the next 3 days.