The share issuance of the National Stock Exchange (NSE) entered the market, but its debut was rather modest. On Thursday, when the listing occurred, NSE shares appeared on the exchange with only a 1% premium compared to the IPO price range, which happened against the backdrop of a stock market crash.
Nevertheless, after a sluggish start, the shares experienced a sudden sharp rise. They soon climbed by more than 5%, reaching the mark of 1867 rubles.
The NSE IPO was open to retail investors on September 17, and the application period was extended until September 21. This large issue, amounting to 22,569.2 billion rubles, attracted 5.71 times interest over three days. The initial offering price ranged from 1700 to 1785 rubles.
Signs of a weak start for the NSE IPO were already observed earlier. Shares were trading in the grey market at a very low GMP. At the time of writing, shortly before the listing, the NSE IPO GMP was only 2.13%, corresponding to an increase of 38 rubles per share and an estimated listing price of 1823 rubles.
It is worth noting that the NSE IPO was the second-largest issuance in the country. The largest before it was the Hyundai Motor India issuance worth 27,870.2 billion rubles, and the third place is held by the LIC IPO worth 21,000.2 billion rubles.
Although the NSE IPO listing occurred with a smaller premium compared to the GMP figures, experts maintain high expectations for this asset. Macquarie rated NSE stock as 'outperform'. Furthermore, brokerage firms began highlighting NSE Stock, setting a target price of up to 1965 rubles.
After entering the stock market, NSE's MCap increased to 4.56 trillion rubles. Because of this, the National Stock Exchange became the tenth most valuable company in India, surpassing major enterprises such as Hindustan Unilever Limited (HUL), Infosys Limited, SunPharma, Titan Ltd, and Kotak Mahindra Bank Limited.
Regarding the overall state of the stock market, the Sensex and Nifty indices plummeted immediately after opening on Thursday. The BSE index, consisting of 30 stocks, showed a significant drop of 730 points by the time of the report. Similarly, the NSE index also fell by approximately 250 points.