The ₹22,569-crore initial public offering of the National Stock Exchange of India (NSE), the country’s second-largest IPO, received over 5 times subscription on the final day on Monday, led by strong demand from institutional buyers.
The offering is India’s second-largest public issue after Hyundai Motor India’s ₹27,870-crore IPO in 2024. The IPO surpassed LIC’s ₹21,000 crore offering in 2022 but remains below Hyundai Motor India’s record public offer so far.
The NSE IPO received bids for 50.58 crore (50,58,11,384) shares against 8.86 crore (8,86,42,911) shares on offer, for a 5.71-times subscription, according to BSE data.
The category for Qualified Institutional Buyers (QIBs) garnered 12.68 times subscription, while the portion for non-institutional investors was subscribed 6.55 times. The retail investors’ portion was booked 1.39 times.
The mega IPO generated nearly ₹90,300 crore of demand against the ₹22,568 crore issue size.
Allotment chances
With the retail portion subscribed 1.39 times, the indicative allotment ratio works out to roughly 75 per cent, which means around three out of every four eligible retail applicants could get an allotment.
However, the actual allotment is subject to the IPO’s prescribed allocation rules and the number of valid applications. Therefore, the 75 per cent figure should be viewed as an indicative probability rather than a guaranteed allotment ratio.
The NSE IPO has a minimum lot size of eight shares, with the price band fixed at ₹1,700-1,785 per share. At the upper end of the price band, one lot costs ₹14,280.
In the grey market, the premium for NSE shares has declined sharply during the IPO period. The latest grey market premium (GMP) indicates a potential listing gain of around 3 per cent, according to InvestorGain.
However, GMP is an unofficial indicator and is not regulated by stock exchanges or the market regulator. It does not guarantee the listing price or returns.
NSE raised ₹6,746.18 crore from 189 anchor investors at ₹1,785 per share. The exchange allotted 3.78 crore shares to the anchor investors on September 16.
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