The National Stock Exchange of India’s (NSE) 225.69 billion rupees ($2.3 billion) IPO was subscribed 42% on its first day of bidding on Thursday, pointing to a lukewarm initial response to the widely watched share sale.
The initial public offering received bids for 37 million shares against 88.6 million on offer, as of 5:03 p.m. IST, exchange data showed.
Subscriptions often pick up in later days of an IPO. The NSE public issue closes on September 21, with a listing planned on September 24.
“The initial subscription data should not be read too much into as there are also multiple IPOs taking place simultaneously and subscriptions will pick up as institutional buyers start coming in,” said Aishvarya Dadheech, founder and CIO at Fident Asset Management.
The $2.3 billion IPO, among India’s biggest on record, comes when the primary market is attracting major issuers, including billionaire Mukesh Ambani-backed Jio Platforms. The offering is an offer-for-sale by existing shareholders.
The stock exchange operator on Wednesday allotted shares worth $703.04 million to marquee global and domestic investors, including the sovereign wealth funds of Norway and Abu Dhabi, as part of its anchor book allocation ahead of the IPO.
Retail and non-institutional investors subscribed 42% and 70% of the shares on offer, respectively, while qualified institutional buyers subscribed 19%.
NSE is seeking a valuation of up to $46 billion, 15% to 20% lower than what it had pitched in pre-IPO roadshows due to a slowdown in options trading activity.
The exchange has been losing market share in index options, a key business segment, to rival BSE BSEL.NS, Ventura Securities analysts said.
“NSE has lost share here since SEBI (India’s market regulator) allowed each exchange only one weekly expiry day for options trading,” said analysts at Choice Broking. “A higher transaction tax from April 2026 will weigh on volumes further.”
Reuters
