NSE shares to trade on MSEI alongside BSE; GMP rises marginally ahead of debut

Shares of the National Stock Exchange (NSE) are set to make their much-awaited market debut on Thursday, September 24, with the stock scheduled to trade on both the BSE and Metropolitan Stock Exchange of India (MSEI).

NSE had chosen the BSE as its designated stock exchange for the public issue. However, MSEI has admitted NSE shares for trading under its “Permitted to Trade” category from September 24, according to a circular issued by the exchange on Wednesday.

Under the permitted-to-trade framework, companies do not execute a listing agreement with the exchange and therefore do not provide the full disclosures applicable to listed companies, MSEI said in its circular.

The move means NSE shares will become tradable on another recognised exchange even as the stock makes its formal listing debut on BSE.

Ahead of the listing, the latest grey-market data showed NSE’s grey market premium (GMP) at ₹72 per share as on 7:37 pm, September 23, according to Investor Gain.

Against the IPO’s upper price band of ₹1,785, the ₹72 GMP translates into an indicative price of around ₹1,857, or a premium of about 4.03%.

The grey-market premium, however, is an unofficial indicator and does not guarantee the actual listing price. The GMP has also remained volatile in the run-up to the debut, falling from ₹111 on September 18 before recovering to ₹72 on September 23.

₹22,569-crore IPO gets 5.71x subscription

The NSE IPO, which raised around ₹22,569 crore, received strong demand during the bidding period and was subscribed 5.71 times by the close of the issue.

The issue received bids for around 50.6 crore shares against 8.86 crore shares on offer. The qualified institutional buyer category saw particularly strong demand, with subscription of around 12.68 times, while the non-institutional investor portion was subscribed 6.55 times.

The listing will mark NSE’s transition from an unlisted market infrastructure institution to a publicly traded company.

The MSEI admission also comes amid discussions around whether NSE could eventually allow trading of its own shares on its platform. NSE managing director and CEO Ashishkumar Chauhan had earlier said the exchange had not applied for such a facility and would consult SEBI if it decided to pursue the option.