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NSE IPO GMP slips ahead of launch tomorrow, 17 September: Should you subscribe at IPO price of ₹1,785?
The NSE IPO launches on September 17, seeking ₹22,561.57 crore with a discounted price band of ₹1,700 to ₹1,785. Despite declining grey market premium, brokerages recommend subscribing due to NSE's market dominance and long-term growth potential.
NSE IPO GMP: The National Stock Exchange of India (NSE) IPO is set to enter the primary market spotlight on September 17, with the ₹22,561.57 crore issue opening for subscription amid positive grey-market activity but some moderation in its premium. The three-day issue will remain open until September 19, giving investors a closely watched opportunity to participate in the country’s largest stock exchange.
It has set the price band at ₹1,700 to ₹1,785 for 12.64 crore shares being offered in the IPO.
NSE shares are expected to be listed on the Bombay Stock Exchange (BSE) on September 24. The allotment process is scheduled to be finalised by September 22, while shares are expected to be credited to eligible investors’ demat accounts on September 23.
The grey market premium (GMP) for the NSE IPO has seen a marginal decline ahead of its launch on Thursday, amid investor caution over the outlook for capital market firms as derivatives trading volumes decline.
Despite the moderation, grey-market activity remained positive. NSE shares were commanding a GMP of ₹167, indicating a potential listing price of ₹1,952, representing a 9.4% premium over the IPO price of ₹1,785.
Earlier last week, the NSE IPO was commanding a GMP of over 200%, which means a premium of more than 12%.
Brokerages have highlighted NSE’s dominant market position, strong profitability, technology infrastructure and long-term growth potential, while also flagging its dependence on trading volumes and regulatory changes.
Geojit said NSE was valued at around 42x FY26 adjusted earnings at the upper price band of ₹1,785, which was lower than its peer.
“Its asset-light business model enables consistently high margins and cash generation, while growing capital market participation and increasing financialization provide a strong long-term growth runway. Hence, we assign a “SUBSCRIBE” rating for medium to long-term investors,” suggested the brokerage.
Meanwhile, Swastika Investmart noted that NSE commands around 93% of the cash market and approximately 99.8% of the equity futures market. At ₹1,700-1,785, it trades at around 40.9x-42.9x FY26 diluted EPS, compared with 54.28x for BSE, leaving room for re-rating given NSE’s larger scale.
However, the brokerage pointed out that around 79% of revenue is linked to trading volumes, making earnings sensitive to market activity and regulatory changes. It recommended subscribing for both long-term investment and minor listing gains, citing NSE’s leadership and valuation advantage.
Furthermore, Ventura also has a susbcribe rating for the IPO.
“With its leadership position, strong brand, technological capabilities and expanding capital-market ecosystem, NSE remains well positioned to capture the long-term growth opportunity in India’s financial markets,” Ventura said.
It added that despite moderation in earnings, NSE maintained strong profitability, with FY26 ROE of 32.1% and ROCE of 24.2%. It said the IPO would support growth initiatives while managing government dependency and execution risks, and recommended subscribing.
NSE's IPO is entirely an Offer for Sale (OFS), meaning none of the proceeds will go to the exchange as investors offload their stakes.
The lot size is 8 shares, meaning retail investors require a minimum amount of ₹14,280 at the upper price band. Employees of the exchange will be eligible for a ₹170 discount on their bids.
At the upper end of the price band, the NSE IPO will be valued at ₹22,561.57 crore, making it the second-largest IPO in Indian history. At this valuation, the exchange’s market capitalisation will stand at around ₹4.41 lakh crore.
The NSE has reduced the size of its proposed IPO OFS by around 15%, with several shareholders trimming the number of shares they plan to sell, according to the red herring prospectus filed on September 10. The total OFS has been cut to up to 12.64 crore shares, from 14.89 crore shares proposed in the updated draft red herring prospectus, a reduction of approximately 2.25 crore shares.
Retail investors have been allotted 35% of the issue, while 50% is reserved for qualified institutional buyers (QIBs). The remaining shares have been earmarked for non-institutional investors (NIIs).
The book-running lead managers are Kotak Capital, JM Financial, Morgan Stanley India, Citigroup, HSBC Securities, JPMorgan India, SBI Capital, Anand Rathi Advisors, Avendus Capital, Axis Capital, DAM Capital, Equirus Capital, HDFC Bank, ICICI Securities, IDBI Capital, IIFL Capital, Motilal Oswal, Nuvama Wealth, Pantomath Capital and 360 ONE WAM.
Established in 1992, NSE is India’s largest stock exchange and one of the world’s leading multi-asset exchange platforms. It offers an integrated ecosystem spanning trading, clearing and settlement, listings, market data, index services and regulatory functions across equities, derivatives, currencies, commodities, debt securities and mutual funds.
NSE gets 80% of its revenue from trading, of which 60% comes from options trading.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
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