NSE IPO Day 2: Issue fully subscribed; QIB, NII quotas see strong demand
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The ₹22,562 crore initial public offering (IPO) of the National Stock Exchange of India (NSE) sailed through on the second day of bidding, getting fully subscribed by 3 pm on September 18. Investors placed bids for 8.90 crore shares against 8.86 crore shares on offer, according to exchange data.
Qualified institutional buyers (QIBs) led the demand, with their portion subscribed 1.32 times. The non-institutional investor (NII) quota was subscribed 1.38 times, while the employee portion was subscribed 1.36 times. The retail portion was 66% subscribed.
Within the NII category, the portion reserved for investors bidding more than ₹10 lakh was subscribed 1.27 times, while the ₹2 lakh–₹10 lakh segment was subscribed 1.59 times.
The IPO had opened to a relatively muted response on September 17, with the issue receiving bids for 3.70 crore shares against 8.86 crore shares on offer, translating into an overall subscription of 42% at the end of Day 1.
The NII portion was 70% subscribed on the first day, with bids for 1.32 crore shares against 1.89 crore shares reserved for the category. Within the segment, the portion for bids above ₹10 lakh was 59% subscribed, while the ₹2 lakh–₹10 lakh category was 91% subscribed.
The retail portion was 42% subscribed on Day 1, with bids for 1.87 crore shares against 4.41 crore shares reserved for the category. The QIB portion saw weaker demand, with bids for 47.28 lakh shares against 2.52 crore shares on offer, translating into 19% subscription.
The IPO comprises an offer for sale (OFS) of 12.64 crore shares, with no fresh issue. The price band has been fixed at ₹1,700-1,785 per share.
GMP signals potential 8% listing gain
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 price band, 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 ranged between ₹142 and ₹310 over the past 15 sessions, indicating softer grey market demand ahead of the listing. GMPs are unofficial indicators and can change before listing; they do not guarantee the actual listing price or gains.
Ahead of the IPO, NSE raised ₹6,746.18 crore from anchor investors, with demand touching nearly ₹1.2 lakh crore, or around 20 times the anchor book size.
NSE allotted 3.78 crore equity shares to anchor investors at ₹1,785 apiece, the upper end of the price band. More than 150 investors participated in the anchor book, with strong interest from foreign and domestic institutional investors.