NSE IPO Day 2: Issue subscribed 52%; NII portion at 90%, employee quota fully subscribed

The initial public offering (IPO) of the National Stock Exchange of India (NSE) was subscribed 52% on the second day of bidding, with investors placing bids for 4.57 crore shares against 8.86 crore shares on offer, according to exchange data.

The ₹22,562-crore NSE IPO, which opened for public subscription on September 17, was subscribed 42% on the first day of bidding. The issue comprises an offer for sale (OFS) of 12.64 crore shares at a price band of ₹1,700-1,785 per share, with no fresh issue of shares. At the upper end of the price band, the IPO values NSE at around ₹4.42 lakh crore.

As per the IPO document filed with Sebi, up to 50% of the issue is reserved for qualified institutional buyers (QIBs), at least 15% for non-institutional investors (NIIs) and at least 35% for retail investors, while a portion is reserved for eligible employees.

NII portion reaches 90%

Non-institutional investors (NIIs) showed strong demand, with their reserved portion receiving bids for 1.70 crore shares against 1.89 crore shares on offer, translating into 90% subscription.

Within the NII category, bids from investors applying for more than ₹10 lakh stood at 77%, with 96.87 lakh shares bid for against 1.26 crore shares reserved.

The segment for applications between ₹2 lakh and ₹10 lakh was already oversubscribed, receiving bids for 72.98 lakh shares against 63 lakh shares reserved, translating into 1.16 times subscription.

Retail investors subscribe 53%

The retail portion was subscribed 53%, with bids for 2.35 crore shares against 4.41 crore shares reserved for the category.

Of the total retail bids, 2.15 crore shares were placed at the cut-off price, while 20.22 lakh shares were bid at a specific price.

QIB demand remains subdued

The QIB portion was subscribed 19%, with bids for 47.63 lakh shares against 2.52 crore shares reserved.

Among QIB bids, mutual funds accounted for 28.03 lakh shares, followed by foreign institutional investors with 18.74 lakh shares. Other investors placed bids for 83,960 shares, while domestic financial institutions placed 1,736 shares.

Employee quota fully subscribed

The employee reservation portion was subscribed 1.14 times, with bids for 4.93 lakh shares against 4.33 lakh shares reserved.

Of the total employee bids, 3.77 lakh shares were placed at the cut-off price, while 1.16 lakh shares were bid at a specific price.

NSE IPO GMP falls to ₹142

The grey market premium (GMP) for the NSE IPO stood at ₹142 as of September 18, according to grey market tracking data. At the upper end of the IPO price band of ₹1,785, the GMP indicates an estimated listing price of around ₹1,927, implying a potential listing gain of about 8%.

The latest GMP is well below the recent high of ₹310. The premium has fluctuated between ₹142 and ₹310 over the past 15 sessions, pointing to softer grey market demand ahead of the NSE IPO listing.

Grey market premiums are unofficial indicators and can change before listing. They should not be treated as a guarantee of the actual listing price or gains.

Ahead of the IPO, NSE 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.

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