NSE IPO: GMP signals 12% listing premium ahead of September 17 opening

The National Stock Exchange (NSE) IPO is set to open for subscription on September 17, with strong investor interest ahead of the issue. The grey market premium (GMP) is currently reported at around ₹214, according to the latest market data.

At the upper end of the NSE IPO price band of ₹1,785 a share, the current GMP indicates an estimated listing price of around ₹2,005, implying a potential premium of approximately 12.32% over the issue price. With the IPO opening next week, the movement in NSE’s GMP is likely to remain a key indicator of grey-market sentiment, although investors will ultimately look to the subscription numbers and the stock’s actual listing performance.

NSE IPO GMP moderates after SEBI clearance

The recent movement in the GMP offers a glimpse into investor sentiment ahead of the public issue. The premium was around ₹285 on September 4, when the Securities and Exchange Board of India (Sebi) granted final clearance for the NSE IPO, providing a significant boost to expectations around the issue.

Since then, however, the GMP has moderated to around ₹214, indicating some cooling in grey-market expectations even as investor interest remains strong. It is important to note that the grey market premium is unofficial and does not guarantee the actual listing price or returns.

NSE IPO opens September 17

NSE will offer up to 12.64 crore existing shares through an offer for sale (OFS). The IPO will open on September 17 and close on September 21, with the shares expected to list on September 24.

The price band has been fixed at ₹1,700-1,785 a share. At the upper end of the price band, NSE is looking at a valuation of around ₹4.42 lakh crore.

As the issue is entirely an OFS, the proceeds will go to existing shareholders selling their stakes rather than to NSE.

Ashish Chauhan on IPO pricing

NSE MD & CEO Ashish Chauhan has defended the exchange’s IPO pricing process, saying the management relied on its merchant bankers and advisers while determining the price band.

Chauhan has also clarified that NSE has not applied to Sebi to allow its own shares to trade on the exchange.

The IPO marks a major milestone for NSE, which has been preparing for a public listing for several years following regulatory and governance-related hurdles.

NSE management has also sought to address concerns over the exchange’s dependence on derivatives for revenue. The management said the contribution of transaction charges to revenue has declined over the past five years, while businesses such as data, connectivity, indices, commodities, electronic gold receipts (EGRs), exchange-traded funds (ETFs) and the specialised investment fund (SIF) ecosystem could provide avenues for diversification.

The comments come amid investor focus on whether NSE can sustain growth and diversify its revenue base as market structures and trading patterns evolve.

Morgan Stanley India Managing Director and co-head of investment banking Sachin Wagle described NSE’s public listing as a “remarkable moment” for the exchange and India’s capital markets. He said millions of investors and traders who participate in the market would now have an opportunity to own a stake in the institution through the IPO. “Most of India trades on this market, and they will now get a chance to own a sliver,” Wagle added.