NSE’s ₹2.26 lakh crore IPO gets subdued demand from retail crowd
NSE on Monday set the offer price at ₹1,785 per share, at the top end of the marketed range.
India's National Stock Exchange (NSE) announced a disappointing response to its ₹22,561.57 ($2.4 billion) initial public offering, with retail investors showing limited interest in the largest stock market debut in the country's history. The IPO was subscribed 5.7 times overall, with institutional buyers bidding for 12.7 times their allotted shares, while non-institutional investors subscribed 6.5 times.
The retail investor portion was only covered 1.3 times. The exchange priced the shares at ₹1,785 per share, at the upper end of the marketed range, but the subscription levels fell short of other large Indian IPOs in recent years. NSE's dominant position in the world's fastest-growing capital markets and its high profitability were factors in the deal, but regulatory scrutiny of speculative derivatives trading, a key source of revenue, forced the company to lower its valuation expectations. NSE's gray-market premium fell to around 3% on Monday following the subdued demand.
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