NSE IPO kicks off: IFCI, NIACL, SBI, GIC RE, BOB shares gain up to 8%; here's why

Shares of selling shareholders participating in the mega NSE IPO jumped in Thursday's trade as the issue opened for public subscription, creating value unlocking opportunity for offer for sale participants.

IFCI Ltd climbed 7.81 per cent to Rs 80.95 apiece. IFCI's step-down subsidiary Stock Holding Corporation of India Ltd (SHCIL) is looking to sell up to 6,187,500 equity shares in the NSE IPO, the Red Herring Prospect suggested. The IFIC arm held 4.44 per cent stake in NSE.

At 10 am, the New India Assurance Company Ltd (NIACL) was up 6.91 per cent at Rs 196.91 apiece. NIACL owned 1.42 stake in NSE and is looking to offload up to 10,500,000 shares in the issue.

State Bank of India, another selling shareholder, was trading 0.83 per cent higher at Rs 999.30. SBI held 3.23 per cent stake in NSE and is looking to sell up to 15,969,410 shares. SBI arm SBI Capital Markets is also a selling shareholder, eyeing up to 8,780,590 share sale.

General Insurance Corporation of India (GIC Re) advanced 1.57 per cent to Rs 343.05. Bank of Baroda also added 0.40 per cent.

Brokerage firms including YES Securities, Choice Broking, Swastika Investmart, BP Equities, Sushil Finance, KC Securities, Angel One, SMIFS, Ventura Securities, Geojit Financial Services and Master Capital Services have suggested to subscribe to the issue, while  Chola Securities and Religare Broking have assigned a 'neutral' rating on it.

Angel One, in a note on NSE IPO, said the issue is valued attractively relative to listed peer BSE, offering a favourable entry point. At the upper price band of Rs 1,785, NSE is valued at a post-issue PE of 35.4 times, compared with BSE’s 54.2 times, the domestic brokerage said while suggesting a 'Subscribe' rating on the IPO.

"NSE’s dominant market position, significantly higher revenue and profitability, strong market share in equity derivatives, and long-term structural growth in Indian capital markets provide further comfort. Despite near-term regulatory headwinds to derivatives volumes, we believe the valuation offers a favourable entry point given the company’s strong competitive position and earnings potential," Angel One said.