NSE IPO GMP surges to ₹285 amid listing buzz; issue likely to hit D-Street by Sept 21

All you need to know about the NSE IPOThe highly anticipated initial public offering (IPO) of the National Stock Exchange (NSE) is generating strong buzz in the grey market ahead of its expected stock-market debut later this month. According to IPO Watch, the NSE IPO grey market premium (GMP) stood at ₹285 on Monday, up ₹85 from ₹200 a day earlier.

The NSE IPO is likely to hit Dalal Street in the fourth week of September, with the exchange targeting a listing around September 25, according to industry sources. The exchange is expected to announce the price band next week, while the IPO could open for subscription around September 15, a source told Fortune India.

NSE is reportedly looking to raise around ₹30,000 crore at an estimated price band of ₹1,800-₹1,900 per share, implying a valuation of about ₹5 lakh crore. If completed as planned, the issue could become India's largest-ever IPO. The shares are expected to be listed on the BSE.

At the current GMP, investors could potentially see a listing premium of around 15% if the shares are priced near the upper end of the expected price band. However, grey market premiums are unofficial and can change sharply before listing.

The Securities and Exchange Board of India (Sebi) gave its approval for the proposed IPO on September 4, clearing a key regulatory hurdle nearly a decade after NSE's earlier listing plans were put on hold.

NSE had filed its draft red herring prospectus (DRHP) with Sebi in June and received the regulator's final observations on September 4. The exchange has yet to formally announce the IPO size, price band, subscription dates and other issue details.

All you need to know about the NSE IPO

The proposed IPO will be entirely an offer for sale (OFS), with existing shareholders offering up to 14.89 crore equity shares, representing nearly 6% of NSE's equity, according to the DRHP.

State Bank of India (SBI) is expected to be the largest selling shareholder, offering up to 2.48 crore shares. Mauritius-based MS Strategic plans to sell around 1.6 crore shares, while Canada Pension Plan Investment Board (CPPIB) will offload nearly 1.19 crore shares.

Aranda Investments, Bank of Baroda and Stock Holding Corporation of India are also expected to participate in the OFS. LIC, one of NSE's largest shareholders, has opted not to sell shares in the IPO.

According to the DRHP, 50% of the net offer is reserved for qualified institutional buyers (QIBs), 15% for non-institutional investors (NIIs) and 35% for retail investors. Up to 5% of NSE's post-offer paid-up equity share capital has also been reserved for eligible employees.

The IPO is expected to attract significant investor interest given NSE's dominant position in India's equity and derivatives markets and the long-awaited opportunity to invest in the exchange's shares.

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