NSE IPO Opening Lifts IFCI, NIACL, GIC and Other NSE-Linked Stocks Up To 9% As Exchange's ₹22,569 Crore Issue Begins
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NSE's ₹22,569 crore IPO opened on September 17, putting its shareholder companies in focus. NIACL, IFCI and GIC Re rose as much as 9% during the session. The issue is entirely an offer for sale, while NSE shares are scheduled to list on the BSE on September 24.
Shares of companies with direct or indirect exposure to the National Stock Exchange (NSE) rose on Thursday as the exchange's long-awaited ₹22,569 crore initial public offering opened for subscription. IFCI, New India Assurance (NIACL) and General Insurance Corporation of India (GIC Re) were among the gainers, with some stocks rising as much as 9%.
NSE-Linked Stocks Rise Up To 9%
NIACL led the gains, climbing more than 9% to ₹201.24. The state-owned insurer is selling 1.05 crore NSE shares through the offer for sale and held a 1.42% stake in the exchange before the IPO.
IFCI shares rose around 8% to ₹80.97. The company's exposure to NSE comes through Stock Holding Corporation of India (SHCIL), in which IFCI holds more than a 50% stake. SHCIL owns over 4% of NSE and is selling close to 62 lakh shares through the offer for sale.
GIC Re gained nearly 3% to trade around ₹347. The state-run reinsurer is selling roughly 61.88 lakh NSE shares and held close to a 2% stake in the exchange ahead of the IPO.
Maithan Alloys also advanced more than 5%. While the company is not a selling shareholder in the IPO, it holds a 0.17% stake in NSE.
The moves in these stocks come as NSE's public issue brings renewed focus to its existing shareholders and their holdings in the exchange.
NSE IPO: Key Details To Know
The NSE IPO comprises an offer for sale of 12.64 crore shares, with the price band fixed at ₹1,700-₹1,785 per share. There is no fresh issue component, meaning the proceeds from the IPO will go to the existing shareholders selling their stakes.
The issue opened on September 17 and will close on September 21. NSE shares are scheduled to list on the BSE on September 24. The minimum lot size is eight shares, taking the minimum investment to ₹14,280 at the upper end of the price band. At ₹1,785 per share, NSE's implied market capitalisation stands at around ₹4.42 lakh crore.
Ahead of the public issue, NSE raised ₹6,746 crore from more than 150 anchor investors. Foreign portfolio investors contributed ₹2,883 crore, or 43% of the anchor book, with more than 20 foreign long-only funds participating. These included Singapore's sovereign wealth fund GIC, the Abu Dhabi Investment Authority and Norges Bank.
Domestic institutional participation was also significant, with more than 25 mutual funds and 11 insurance and pension companies investing around ₹3,588 crore, or 53% of the anchor allocation.
LIC, NSE's largest shareholder with a 10.72% stake, invested more than ₹500 crore through LIC, LIC Mutual Fund and LIC Pension Fund. The SBI group, which is selling a 1% stake in NSE through State Bank of India and SBI Capital Markets, also participated in the anchor round through SBI Mutual Fund, SBI General, SBI Life and SBI Pension Fund. Its combined investment exceeded ₹400 crore.
With the IPO open until September 21 and the listing scheduled for September 24, NSE and its listed shareholders will remain in focus through the subscription period.
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This article is for informational purposes only and should not be considered investment advice from Kotak Neo. For compliance T&C and disclaimers, Visit www.kotakneo.com/disclaimer
Rochelle Britto has spent 8+ years decoding India's markets, businesses, and consumer economy, reporting for ET Prime and Times Internet along the way, covering the stories behind the numbers.
A Mumbai native and perpetual planner of the next holiday, she stays far, far away from the eternal question, “Where are we going next?” When she's not chasing headlines, she's chasing new cultures, open roads, and a bit of quiet in nature.
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