₹1 lakh crore history has a warning for NSE bulls
India's largest-ever IPO, the National Stock Exchange (NSE), is set to become the country's second-biggest public listing. However, a recent analysis warns that the mega-IPO track record may be a warning for investors chasing size alone. Of the six IPOs that raised over Rs 10,000 crore, four have delivered negative returns since their listings.
NSE's IPO, which is entirely an offer for sale, will not provide fresh capital to the exchange. The grey market has shown a cautious sentiment, with the NSE GMP falling significantly from the IPO price band. Despite the exchange's dominant market position, investors should be aware of its sensitivity to trading volumes and potential earnings volatility due to regulatory changes on derivatives.
Written by urgent.news from The Economic Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
