NSE IPO Sees Strong Demand on Final Day of Bidding; GMP Falls Sharply

It’s Day 3 of bidding for the NSE IPO and also the last day for investors to subscribe to the issue. The IPO got fully subscribed on Day 2 of bidding itself, making the final day an important one for investors who are still looking to participate in the issue. The NSE IPO is a Rs 22,561.57 crore issue. It is entirely an offer for sale (OFS), with the price band fixed between Rs 1,700-1,785 per share. The allotment for the NSE IPO is expected to be finalised on September 22, 2026. The shares are scheduled to list on the BSE on September 24. NSE IPO's GMP is falling drastically, as various trackers quoted its GMP at Rs 30, suggesting a likely listing price of Rs 1,815. This reflects gains of 1.68% per share and a gain of Rs 240 per lot. However, readers must know that GMP is not an official metric to determine the listing price and fluctuates based on market conditions. As of the latest, the NSE IPO was subscribed 5.59 times on Day 3 of the bidding process. The retail portion was subscribed 1.25 times, while the Qualified Institutional Buyers (QIB) category saw 12.59 times subscription. The Non-Institutional Investors (NII) category was subscribed 6.47 times so far. NSE derives the majority chunk of its revenue from transaction charges, which stood at nearly 79% in FY26. Of these, the options and futures segment is the key contributor to the total revenue. This makes the issue highly vulnerable to the risk of reliance on revenue generation from one segment. Additionally, risks pertaining to trading volume, regulatory tightening, higher STT and possible infrastructure issues may impact the exchange's cash flow. “We expect modest listing gains in the range of 6%–8%. However, given NSE’s near-monopolistic market leadership, superior operating margins, and a reasonable valuation discount compared to BSE, the risk-reward ratio remains compelling,” said Vipin Kumar, Assistant Vice President of equity research at Globe Capital Markets. He noted that the brokerage advises investors to look past the near-term regulatory headwinds in index options and hold shares from a medium-to-long-term perspective. So far the NSE IPO has been subscribed 2.56 times. The maximum participation is being witnessed in the QIB portion, which has been subscribed 4.10 times, followed by the NII segment, which has been subscribed 4.09 times. The retail applicant category was fully subscribed on day three by 1.03 times, while the employees quota has been subscribed 2.07 times. NSE operates a business that is closely linked to financial-market regulations. Changes in rules governing exchanges, trading products, transaction charges or market infrastructure can affect its operations and revenue. The company is also subject to regulatory oversight because of its role in India's financial-market infrastructure. Once listed, NSE will additionally have the disclosure and reporting requirements that apply to listed companies. The National Stock Exchange (NSE) IPO has received bids for 1.90 times the shares on offer so far on Day 3 of the bidding process. The issue continues to attract investor interest, with bidding still underway. The retail portion has been subscribed 0.98 times, while qualified institutional buyers (QIBs) have placed bids for 2.54 times their reserved portion. The non-institutional investor (NII) segment has seen stronger demand, with subscription reaching 3.21 times. One of the most important points about this IPO is that NSE will not receive the money raised through the public issue. Since the issue is an OFS, the proceeds will go to the shareholders who are selling their shares. This also means the IPO does not provide NSE with fresh equity capital for expansion or investment. The transaction is primarily about allowing existing shareholders to sell part of their holdings and bringing NSE shares to the listed market. NSE generates revenue from several parts of its business. These include transaction charges, listing services, market data, clearing and settlement services and other market-related activities. Trading activity, particularly in the derivatives segment, is an important contributor to its business. This also means NSE's revenue is linked to the level of activity in the financial markets. NSE IPO stock is trading in the unlisted market at a grey market premium of 3% (Rs 56), suggesting an estimated listing price of Rs 1,841, based on the upper end of the price band. This reflects a profit of Rs 448 per lot. However, readers must know that GMP is an unofficial metric to estimate the listing price and does not guarantee profits. The NSE IPO has seen an overall subscription of 1.42 times. The retail category has been subscribed 0.85 times Meanwhile the QIB category subscription is around 1.83 times The issue's NII category is subscribed 2.20 times. The NSE IPO GMP has fallen sharply over the weekend. It was hovering between Rs 125-142 after the issue opened on September 17. However, on Monday morning- Day 3 of the IPO, the Grey Market Premium is just Rs 48 per share. Though the GMP is just an unofficial measure, it does indicate investor sentiment. However, the actual listing price can be very different. The IPO has shares reserved for different categories of investors. Qualified institutional buyers (QIBs) have a 50% allocation, while non-institutional investors (NIIs) have 15%. Retail individual investors have a 35% reservation. There is also a separate portion reserved for eligible NSE employees. The NSE IPO lot size has been fixed at eight shares. Investors therefore have to bid for shares in multiples of eight. At the upper price of Rs 1,785, one lot will require an investment of Rs 14,280. Investors looking to apply for more shares can bid for additional lots, subject to the applicable IPO rules and category limits. NSE shares will not be listed on NSE itself. The proposed listing will take place on the Bombay Stock Exchange (BSE). The arrangement avoids the obvious issue of an exchange effectively hosting its own stock. BSE has already given in-principle approval for the listing, meaning investors will trade NSE shares on the BSE platform after the listing. The public issue opened for subscription on September 17 and will close on September 21, 2026. Anchor investors were allowed to participate a day earlier, on September 16. After the issue closes, the allotment is scheduled for September 22. NSE shares are expected to make their stock market debut on September 24, subject to the completion of the listing process. Investors can bid for NSE shares between Rs 1,700-1,785 apiece. The face value of each share is Rs 1. At the upper end of the band, investors are putting a substantial value on the exchange based on its earnings and business position. NSE reported a profit after tax of Rs 10,302 crore in FY26. The issue involves the sale of up to 12,64,36,550 shares. At the upper end of the price band, the total issue size comes to around Rs 22,561.57 crore. The shares being sold represent about 5.11% of NSE’s equity. So, while the IPO is large in terms of the amount being raised, only a relatively small portion of the company is changing hands through the issue. The NSE IPO is entirely an offer-for-sale (OFS). This means NSE itself is not issuing new shares to raise money. Instead, some of the existing shareholders are selling a part of their holdings through the public issue. As a result, the money collected from the IPO will go to these selling shareholders. It will not be added to NSE’s cash balance and will not be used by the exchange for new projects, expansion or other business requirements. Angel One has highlighted NSE’s valuation compared with its key listed peer, BSE, and said the exchange’s strong market position and earnings potential provide further comfort to investors. "At the upper price band of Rs 1,785, NSE is valued at a post-issue P/E of 35.4x, compared with BSE’s P/E of 54.2x, making the issue attractive relative to its key listed peer. NSE’s dominant market position, significantly higher revenue and profitability, strong market share in equity derivatives, and long-term structural growth in Indian capital markets provide further comfort. Despite near-term regulatory headwinds to derivatives volumes, we believe the valuation offers a favourable entry point given the company’s strong competitive position and earnings potential. We recommend Subscribe for the IPO." said Angel One in its IPO note.