NSE IPO Draws 12.7x QIB Demand Amid Retreating Grey Market Premium
NSE's ₹22,569 crore IPO saw strong institutional bidding despite a drop in grey market premium to 2%. Retail interest remained subdued.
Key points
- QIBs excluding anchors subscribed 12.7 times, bidding for ₹4,498 crore in shares.
- NSE posted FY26 net profit of ₹10,302 crore, far exceeding BSE’s ₹2,496.98 crore.
- Grey market premium dropped from 21% to 2%, signaling modest debut expectations.
The National Stock Exchange listed on Thursday, ending a decade-long wait for a public debut. Despite robust institutional interest, the stock is expected to open with a modest premium. This follows a sharp decline in the unofficial grey market premium, which fell from 21% to 2% during the bidding window. Retail investors showed relatively subdued participation in the issue.
Qualified institutional buyers, excluding anchor investors, bid for ₹4,498 crore worth of shares. This segment accounted for 19.94% of the total issue and was subscribed approximately 12.7 times. The exchange generated the highest demand per rupee raised among recent large issues, outperforming peers like LIC and Hyundai Motor India in subscription metrics.
Institutional Orders Dominate Allocation
Top ten buyers secured ₹2,234.15 crore of the QIB portion. NPS Trust received the largest individual allocation at ₹362.47 crore, followed by LIC at ₹342.98 crore. BNP Paribas Financial Markets and Societe Generale also featured prominently in the top bidder list. Mutual funds including ICICI, Quant, WhiteOak, and Mirae Asset participated with significant allocations.
Financials Outpace Competitors
NSE reported operating revenue of ₹16,601 crore and net profit of ₹10,302 crore in FY26. These figures significantly exceed BSE Ltd’s total revenue of ₹5,035.50 crore and net profit of ₹2,496.98 crore. The IPO size of ₹22,569 crore makes it India’s second-largest public issue, trailing only Hyundai Motor India’s ₹27,859 crore offering from October 2024.
Market Access Expands Via MSEI
Beyond its primary BSE listing, NSE shares will trade on the Metropolitan Stock Exchange of India. This falls under the permitted-to-trade category, enhancing liquidity without requiring new disclosures. Broking officials expect the stock to consolidate post-listing, unlike MCX and BSE which opened at 34% and 35% premiums respectively in prior years.
