NSE IPO attracts nearly 12 lakh applications on Day 1 of bidding; key details

The initial public offering (IPO) of the National Stock Exchange of India (NSE) saw a solid interest from the investors across all categories on the first day of the bidding. India's largest ever financial sector issue managed to attract nearly 12 lakh applications with bids worth Rs 6,853.45 crore as of September 17.

According to the data from BSE, the IPO of NSE was overall subscribed 43 per cent, getting bids for 3,83,94,696 equity shares against an net offering of 8,86,42,911 equity shares. The issue managed to attract a massive 11.94 lakh application by the closure of the first day of subscription.

On an individual basis, the quota allocated to non-institutional investors (NIIs) was subscribed 72 per cent, while the retail portion was booked 44 per cent. Employees portion, which is capped at Rs 70 crore, was almost fully subscribed on day one with 98 per cent subscription. The portion for qualified institutional bidders (QIBs) was subscribed 19 per cent.

NSE launched its IPO on Thursday, September 17 and will close for subscription on Monday, September 21. Friday (September 18) will mark the second day of the subscription. It is offering its shares in the price band of Rs 1,700-1,785 with a lot size of 8 equity shares. It is raising nearly Rs 22,568 crore from its maiden stake sale which is entirely an offer-for-sale of up to 12.64 crore equity shares.

Brokerage firms are positive as they see it as a proxy play for India's growth story. They are positive on its dominant market position, robust competitive moats, solid cash flows, debt free status, reasonable valuations against BSE, diversified product portfolio and decent dividend yield. Majority of them have suggested subscribing to NSE IPO from a long-term perspective.

Ahead of its IPO, NSE raised over Rs 6,746 crore from 189 anchor investors as it allocated 3,77,93,739 equity shares at Rs 1,785 apeice. Last heard, NSE was commanding a grey market premium (GMP) of around Rs 150, suggesting a listing gains of nearly 8-9 per cent for the investors. Shares of the company shall be listed on only BSE Ltd on Thursday, September 24.