NSE adds Rs 22,000 crore to m-cap as stock rises 5% over issue price after listing

Shares of National Stock Exchange of India Ltd (NSE) rose 5.21 per cent from the issue price to hit a high of Rs 1,878 on BSE on Thursday, after making its market debut at Rs 1,800, a premium of 0.84 per cent over the initial public offering (IPO) price of Rs 1,785.

At the day's high, NSE's market capitalisation (m-cap) stood at around Rs 4.64 lakh crore, compared with an estimated market valuation of about Rs 4.42 lakh crore based on its issue price. This represents an increase of around Rs 22,000 crore in market value.

NSE's shares were listed following the exchange's IPO, which was an offer-for-sale (OFS) by existing shareholders.

Meanwhile, Deven Choksey, MD of DRChoksey Finserv, said he sees NSE as a long-term investment, citing the nature of the exchange business, liquidity benefits for established exchanges and the scope for new products.

Speaking to Business Today Television (BTTV), Choksey said he views NSE as a "deep value" investment.

"The long-term investment in this case is, I think, a deep value investment largely because the exchange business is exclusive. It's not a common business. Not everybody can come into the exchange business," he said.

According to Choksey, established exchanges can benefit from the liquidity on their platforms once a product gains market share.

For investors who did not receive an NSE IPO allotment, Choksey suggested a systematic investment approach and a long-term horizon.

"They should do SIP and keep buying this stock in the portfolio. Keep a horizon of at least three to five years," he said.

Choksey said he sees visibility for the exchange business over the next decade. He pointed to India's market capitalisation potentially rising from $5 trillion to $15 trillion over the next 10-12 years and said the exchange business could benefit if that happens.

The market veteran also said mid-sized investors could take a more calibrated exposure based on their cash-flow requirements.

"You can call this particular stock a shock absorber in your portfolio, which would keep on giving you the comfort level during the volatile market," he concluded.

VK Vijayakumar, Chief Investment Strategist at Geojit Investments, said, "If the NSE stock becomes available in today's trade at a fair price, that would be a good opportunity for long-term investors to have a blue chip in their portfolio."