India’s biggest stock exchange is set to begin trading after its Rs 22,569-crore IPO drew 5.71 times subscription, with market conditions and crude prices in focus
The National Stock Exchange of India is set to make its stock market debut on Thursday, marking a milestone for the country’s largest exchange after its Rs 22,569-crore initial public offering drew strong demand from investors.
NSE shares will be listed on the BSE and Metropolitan Stock Exchange of India, with trading scheduled to begin at 10 am. The listing comes after the IPO was subscribed 5.71 times during the September 17-21 bidding period.
The issue attracted bids for 50.58 crore shares against 8.86 crore shares on offer. Institutional investors led the demand, with the qualified institutional buyers’ portion subscribed 12.68 times. The non-institutional investor category was subscribed 6.55 times, while the retail portion received 1.39 times subscription.
The IPO was offered in a price band of Rs 1,700 to Rs 1,785 per share. It was structured entirely as an offer for sale, meaning NSE itself will not receive proceeds from the issue. The money raised will go to existing shareholders selling their stakes.
NSE’s debut comes at a time when Indian equities are facing pressure from higher crude prices and uncertain global cues.
Brent crude was around $102.5 a barrel on Thursday after rising about 4 per cent in the previous session. The rise followed renewed uncertainty over the US-Iran diplomatic process.
More from BusinessHigher oil prices are a concern for India because of the country’s dependence on imported crude. They can increase the import bill, add to inflationary pressures and weigh on corporate earnings.
GIFT Nifty futures were indicating a weaker start for the Nifty 50, which closed at 23,446.8 on Wednesday. The broader market backdrop could therefore influence NSE’s first trading session.
Ahead of the listing, the grey market premium was around Rs 40 a share, equivalent to about 2.24 per cent over the upper end of the IPO price band. However, grey market indications are unofficial and can change before trading begins.
