NSE's ₹22,562-crore IPO closes 5.7 times subscribed, led by institutions

Synpsis

The opening day for the National Stock Exchange of India's ₹22,562-crore initial public offering (IPO) was Monday at a 5.70 times subscription, compared with 12.68 times by institutional bidders and 1.39 times by retail investors. The issue is that it is an offer for sale and NSE will get no money for the issue, the price is ₹1,700–1,785 per share. More than 12 brokerages recommended subscription, but the grey market premium shrank in the week. The allotment date is 22nd September and the listing date is 24th September.

The bidding process for the first public sale of the National Stock Exchange of India has ended on Monday. According to the data from the NSE, the issue has been subscribed 5.70 times as compared to 8.86 crore shares offered, as of September 21.

The qualified institutional buyers bid 12.68 times their quota, the non-institutional investors bid 6.55 times and the retail investors bid 1.39 times. The book built through the day: 1.42 times at 10:18 am, and 3.97 times by 2:45 pm.

What was on offer

This is an offer for sale by the existing shareholders for up to 12.64 crore shares valued at ₹22,561.57 crore at the upper limit of band and not NSE. There are 8 shares in a lot. The size has been reworked from the revised draft prospectus which proposed a 14.89 crore shares size.

The second largest public issue after the 2024 issue of ₹27,870 crore by Hyundai Motor India (HMI) and followed by LIC's 2022 issue of approximately ₹21,000 crore. The upper limit of the band is estimated to be around ₹4.42 lakh crore on the market capitalisation of NSE.

Qualified institutional buyers took up about half the issue, with non-institutional investors and retail investors taking up 15 per cent and 35 per cent, respectively.

Who sold it, who bought it?

The sellers include Aranda Investments, Stock Holding Corporation of India, SBI Capital Markets and ChrysCapital, with an average 7 per cent stake being sold. The top owner is LIC with a 10.72 per cent stake, which is not for sale.

On the selling side, 189 anchor investors were allotted shares for a total of over ₹6,746 crore. Along with Abu Dhabi Investment Authority, Norway's Government Pension Fund and Fidelity, LIC acquired ₹400 crore worth of the round, the biggest individual stake.

Each copy of the anchor book was turned over approximately 20 times. The day 3 of NSE IPO saw a healthy QIB response for the shares, which were subscribed at 3.8 times the issue price.

The financial record

NSE's profit after tax was ₹10,302.06 crore in FY26, down from ₹12,187.69 crore a year earlier. Revenue from operations was ₹16,601.31 crore, against ₹17,140.68 crore in FY25.

NSE's share of the cash market turnover was 92.99 per cent, equity futures premium turnover was 99.79 per cent, and equity options premium turnover was 74.71 per cent in FY26. Dividends increased almost two-fold to ₹8,662 crore, says Spark Capital.

The consensus of analysts and what they highlight

17 brokerages or more recommended subscription. Angel One estimates the post-issue price to earnings multiple at 35.4 and BSE at 54.2, and suggests the issue be done "despite the near-term headwinds on derivatives volumes due to regulations". Aditya Birla Money cites India's stock-market penetration of 13.5 per cent as area of growth. Spark Capital estimates the cash-market turnover to be at ₹473–507 lakh crore by FY30.

There were indications of caution on the side of the government as well. The so called grey-market price, which was not official, dropped from ₹145 on September 16 to ₹48 on September 20 and 21. At one time on Monday, the retail portion was at 0.69 times. The year on year drop in profit has also been observed in revenue.

It has taken 10 years to make

In 2016, the NSE applied for an IPO but it was rejected. The plan languished until SEBI issued a no-objection certificate in January, in the wake of investigations on the co-location issue. Now managing director and CEO, Ashishkumar Chauhan had become 24 when he joined the team of five who have laid the foundation of the exchange. At the time, it was believed it was another government experiment, following on a scandal.

Chauhan told reporters last week that the NSE requires no fresh capital as it was very profitable and paid back majority of its free cash flow as dividend.

What comes next

NSE can't be listed on the exchange, and its shares are expected to begin trading on its competition, BSE on September 24. The refunds and demat credits will be issued on September 23 and allotment will be done on September 22.

As of June, the exchange had 132.4 million unique registered investors, 1,328 trading members and 3,005 listed companies. There are another seven issues worth crores of rupees awaiting this week, and Jio Platforms is likely to go public by the end of the year. The final day of NSE IPO 2026 has been announced with subscription, GMP, Allotment and Listing Date.

The order book is now closed. The price the market puts on the exchange itself will be known on Thursday.

People thought this was just another government experiment after a scandal." — Ashish kumar Chauhan, MD and CEO, NSE, on the exchange's founding