• Source:JND
HighLights
  1. NSE IPO opens September 17; GMP slips to Rs 179.
  2. Estimated listing gain of 10.03% from the upper price band
  3. Issue size Rs 22,569 crore, second largest in India.

The much-awaited initial public offering (IPO) of the National Stock Exchange (NSE) will open for public subscription on Thursday, September 17. However, the buzz, which was there before the exchange announced the price band, did not carry forward as the NSE IPO GMP remained subdued ahead of bidding. 

According to Investorgain, the NSE IPO last GMP slipped to Rs 179, last updated at 04:54 PM. With this the NSE shares show an estimated listing at Rs 19,64, up 10.03 per cent from upper price band of Rs 1785.00.  Earlier, according to the GMP tracker platform, the NSE GMP was above Rs 200 for the past three days. The grey market premium had reached Rs 285 on September 4, after the IPO got SEBI approval.

The grey market is an unofficial market where shares of unlisted companies trade before listing. The GMP numbers do not guarantee an exact gain or loss on listing. 

NSE IPO: Bidding Dates, Issue Size, Other Key Details 

NSE IPO Detail

Information

Subscription Dates

September 17 - September 21

Issue Size

Rs 22,569 crore

Listing Date

September 24

Price Band

Rs 1,700-1,785

NSE IPO Is Not India’s Biggest

The exchange on Friday fixed a price band of Rs 1,700-1,785 per equity— at the upper end of the price band, NSE will raise Rs 22,569 crore, making it the country's second-largest public issue after Hyundai Motor India's Rs 27,870-crore initial share sale in 2024. 

The National Stock Exchange’s initial public offering (NSE IPO) will not be India’s largest public offering, as the offer-for-sale (OFS) size was reduced by nearly 15 per cent to up to 12.64 crore equity shares from the earlier proposed 14.89 crore equity shares.

Also Read: Tata Chemicals Zooms 20%, Tata Investment Soars 15%: What’s Driving Tata Group Stocks Today?

The reduction in the OFS size from various stakeholders, including SBI and MS Strategic (Mauritius), has brought down the overall issue size from the initial estimate of Rs 30,000 crore. NSE IPO is one of the most awaited initial share sales, and it will open for subscription next week, after its offerings were stalled amid regulatory hurdles.

Stakeholders Reduce Offer For Sale Component

  • The IPO is an offer by existing shareholders to sell up to 126.4 million equity shares, up from the 148.9 million shares previously estimated. According to the Red Herring Prospectus (RHP), existing shareholders have reduced their stake sales.

  • State Bank of India will now offload 1.60 crore shares as compared to the earlier proposed OFS of 2.47 crore shares

  • MS Strategic (Mauritius) Limited’s OFS components were reduced to 1.1 crore shares as compared to proposed 1.6 crore shares.

  • Additionally, other stakeholders, including Bank of Baroda, Stock Holding Corporation of India Limited and General Insurance Corporation of India, have also reduced their proposed share sales. 

  • Meanwhile, SBI Capital Markets Limited has joined the RHP as a new selling shareholder.

  • Since the NSE IPO is a full OFS, the proceeds from the sale of shares will go to the selling shareholders and not to the company.

    • Shares Reservation for Employees, Retail Investors And Others

    Category

    Details

    Employee Reservation

    Shares worth up to Rs 70 crore

    Employee Discount

    Rs 170 per equity share

    QIB Reservation

    50%

    NII Reservation

    15%

    Retail Investor Reservation

    35%

    Hyundai India’s IPO Is India’s Largest 

    Hyundai Motor India's Rs. 27,870 crore IPO was the largest public issue on record in the country. However, this NSE offering will surpass the Rs. 21,000 crore IPO of Life Insurance Corporation of India, which was launched in 2022.

    Disclaimer: This story is for informational purposes only. It should not be considered investment advice. 


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