NSE IPO: ₹6,746 crore anchor book draws 20x demand worth nearly ₹1.2 lakh crore

The National Stock Exchange (NSE) has raised ₹6,746.18 crore from anchor investors, with demand for the shares touching nearly ₹1.2 lakh crore, or around 20 times the size of the anchor book, ahead of its much-awaited public issue.

NSE allotted 3.78 crore equity shares to anchor investors at ₹1,785 apiece, the upper end of its IPO price band. More than 150 investors participated in the anchor book, with strong interest from both foreign and domestic institutional investors, according to market sources.

Foreign portfolio investors (FPIs) accounted for ₹2,883 crore, or 43% of the total anchor allocation. More than 20 foreign long-only funds participated in the book, with investors from the US, Europe and Asia spanning sovereign wealth funds, global mutual funds and other institutional categories.

The anchor allocation included prominent sovereign wealth funds such as Singapore's GIC, Abu Dhabi Investment Authority (ADIA) and Norges Bank, along with global asset managers including Fidelity, Goldman Sachs Asset Management, Eastspring Investments and HSBC Global Asset Management.

Domestic institutional participation was also broad-based. More than 25 large domestic mutual funds and 11 insurance and pension funds invested around ₹3,588 crore, accounting for 53% of the anchor book.

Major mutual fund houses participating in the anchor book included SBI Mutual Fund, ICICI Prudential Mutual Fund, HDFC Mutual Fund, Nippon India Mutual Fund, Axis Mutual Fund, Aditya Birla Sun Life Mutual Fund, Kotak Mutual Fund, UTI Mutual Fund, Mirae Asset Mutual Fund, Tata Mutual Fund, Franklin Templeton, Edelweiss Mutual Fund, HSBC Mutual Fund and LIC Mutual Fund.

Insurance companies including LIC, HDFC Life, SBI Life and SBI General, along with leading pension funds, also participated in the anchor allocation.

LIC, NSE's largest shareholder with a 10.72% stake, participated in the anchor book through LIC, LIC Mutual Fund and LIC Pension Fund, investing more than ₹500 crore, according to market sources.

The SBI group, which is selling around 1% stake in the IPO through State Bank of India and SBI Capital Markets, also participated through SBI Mutual Fund, SBI General Insurance, SBI Life Insurance and SBI Pension Fund, investing more than ₹400 crore.

The participation of existing investors also featured prominently in the anchor book, with several investors increasing their exposure to NSE ahead of its public listing.

The NSE IPO comprises an offer for sale (OFS) of 12.64 crore shares by existing shareholders, with no fresh issue of shares. At the upper end of the ₹1,700–1,785 price band, the issue is valued at around ₹22,562 crore, giving NSE a valuation of approximately ₹4.42 lakh crore.

The public issue is scheduled to open on September 17 and close on September 21, with the shares expected to list on September 25.

The strong anchor demand comes as investors look to gain exposure to NSE, which dominates India's equity and derivatives markets. The exchange's IPO is also among the country's largest public offerings and marks its return to the primary market after a long wait.

With institutional investors committing ₹6,746 crore through the anchor book and demand reportedly touching nearly ₹1.2 lakh crore, the response provides an early indication of the level of institutional interest ahead of the IPO opening for public subscription.