The National Stock Exchange of India’s much-anticipated IPO has moved into oversubscription with institutional investors leading the demand, signalling a robust market appetite despite lower retail participation.
The National Stock Exchange of India’s long-awaited initial public offering has moved firmly into oversubscription, with demand surpassing the shares on offer by the end of the second day of bidding. Exchange data showed the issue was 1.15 times subscribed, helped by strong interest from institutional and non-institutional buyers, even as retail demand remained below the level of shares reserved for that category.
Qualified institutional buyers had subscribed the portion set aside for them 1.53 times, while non-institutional investors had bid for 1.65 times their allocation. Retail investors lagged behind, with their quota covered 0.72 times at the close of Thursday’s session, according to the figures cited by the reports.
The issue, valued at about ₹22,561 crore to ₹22,569 crore depending on the source and pricing assumptions used, is among the largest public offerings in India and is the country’s second-biggest IPO after Hyundai Motor India’s 2024 float, Reuters-reported data cited by several outlets indicated. The offer is entirely an offer for sale, meaning all proceeds will go to existing shareholders rather than to the exchange itself.
The price band has been fixed at ₹1,700 to ₹1,785 a share, with the company offering 12.64 crore equity shares. Bidding opened on 17 September and is due to close on 21 September. The issue also drew a sizeable anchor book earlier in the week, with the exchange raising about ₹6,746 crore from anchor investors at the top end of the price range. Reports said Life Insurance Corporation of India was among the participants, alongside global names including Goldman Sachs and Fidelity.
Demand in the grey market appeared to soften even as formal subscription picked up, with some reports pointing to a narrower implied listing premium than earlier in the week. Separately, the Securities and Exchange Board of India approved the IPO of Social Worth Technologies, according to a processing status update mentioned in the coverage.
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