NSE shares end debut at ₹1,818, gain 1.85%; BSE slips nearly 3% amid broader market sell-off

The National Stock Exchange of India (NSE) made its much-awaited stock market debut on Thursday, with shares ending their first session at ₹1,818 on the BSE, up 1.85% over the ₹1,785 IPO price. The stock, however, pared most of its early gains after touching a high of ₹1,878 during the session.

NSE shares opened at ₹1,800, a 0.84% premium to the issue price, before climbing as much as 5.2% in early trade. The stock subsequently gave up gains and settled at ₹1,818. At the closing price, NSE's market capitalisation stood at around ₹4.50 lakh crore.

The debut came against a weak broader market. The Sensex plunged 1,247.71 points, or 1.67%, to 73,580.54, while the Nifty 50 fell 1.64% to 23,063.10. Rising crude oil prices, higher US bond yields and concerns around global interest rates weighed on investor sentiment.

BSE shares fall as NSE enters listed market

NSE's debut also brought the country's two major stock exchanges into the listed market for the first time. NSE shares are listed on the BSE, as the exchange cannot list its own shares on its trading platform.

BSE shares opened at ₹3,235 against the previous close of ₹3,270.70 and ended at ₹3,183.80, down 2.66%. The stock had touched an intraday high of ₹3,308.00 and a low of ₹3,175.00.

The decline came as investors assessed what NSE's listing could mean for the competitive dynamics between the two exchanges. However, BSE also benefits from being the venue for NSE's listing and trading.

From what should've been India's largest IPO

NSE's public-market debut was preceded by a substantial reduction in the size and valuation of its IPO.

The exchange had initially reportedly been targeting a valuation above $50 billion, with an indicative price range of ₹2,000-2,100 per share. It subsequently cut the price band to ₹1,700-1,785 and reduced the shares offered from 14.89 crore to 12.64 crore. The issue size consequently came down to around ₹22,562 crore, making it India's second-largest IPO after Hyundai Motor India's ₹27,870-crore issue in 2024.

The entire issue was an offer for sale (OFS), meaning NSE itself did not receive the IPO proceeds. Existing shareholders, including SBI and Canada Pension Plan Investment Board, sold shares.

Despite the lower valuation, the IPO received strong demand, with the issue subscribed 5.71 times and attracting bids worth more than ₹90,000 crore.

NSE was incorporated in 1992, received recognition from Sebi in 1993 and commenced operations in 1994. It became India's first exchange to implement electronic or screen-based trading and has since grown into the country's largest exchange by trading activity. E