Mumbai, Sep 21 (IANS) The grey market premium (GMP) for the much-awaited Rs 22,569 crore NSE initial public offering (IPO) fell sharply ahead of the share allotment and listing, even as the issue attracted healthy investor participation and closed with an overall subscription of 5.67 times on the final day of bidding.
According to grey market tracking platforms, the NSE IPO’s GMP stood at Rs 55 on September 21, significantly lower than the peak level of Rs 285 recorded during the bidding period.
The decline of Rs 230 over the last 18 trading sessions points to moderating sentiment in the unofficial market, although expectations of a positive listing remain intact.
Based on the latest GMP and the upper end of the price band at Rs 1,785 per share, the estimated listing price is around Rs 1,840, implying a potential gain of about 3.08 per cent over the issue price. Market observers, however, note that grey market premiums are unofficial indicators and can fluctuate until the day of listing.
Despite the cooling grey market sentiment, investors showed strong interest in the offer. The IPO was subscribed 5.67 times overall at the close of bidding on September 21.
Qualified Institutional Buyers (QIBs) emerged as the biggest contributors, subscribing to their reserved portion 12.68 times. The Non-Institutional Investor (NII) segment was subscribed 6.54 times, while the Retail Individual Investor (RII) category received bids for 1.33 times the shares on offer.
The IPO is entirely an offer-for-sale (OFS), with existing shareholders offloading their stakes. The issue was priced in the range of Rs 1,700-1,785 per share, with investors required to bid for a minimum lot of eight shares.
The strong institutional response highlights continued investor interest in India’s largest stock exchange operator, which occupies a dominant position in the country’s capital markets ecosystem.
Market participants said the robust QIB demand reflects confidence in NSE’s business model, earnings profile and long-term growth prospects despite the recent moderation in grey market valuations.
–IANS
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