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NSE Shares Surge in Market Debut After $2.4 Billion IPO
Confirmed
In Short: India's National Stock Exchange saw its shares rise 8% in its stock market debut.
The National Stock Exchange (NSE) made its historic market debut on Thursday, with its shares listing at Rs 1,800 apiece, marking an around 1% premium over its IPO price of Rs 1,785.
Revenue from transaction charges climbed 39% to 40.77 billion rupees, driven mainly by higher volumes in equity options and cash market trading.
Total expenses rose 32% year-on-year to 14.86 billion rupees, reflecting higher provisions, including 2.23 billion earmarked for corporate social responsibility spending and 840 million rupees related to pending settlement applications with the market regulator.
At 10:51 AM, the stock traded at Rs 1,860.10 a share, up 3.3% from its listing price.
The exchange listed with a market capitalisation of Rs 4.45 lakh crore, significantly higher than BSE’s current market-cap of Rs 1.33 lakh crore.
Despite the challenging market conditions, the exchange swiftly launched its public issue after clearing regulatory challenges due to its focus on “inherent value” instead of “market valuation,” said Srinivas Injeti, Chairperson of the stock exchange.
The NSE had reduced its issue size as many selling shareholders decided to hold onto their shares due to lower-than-expected valuations and growth potential post listing.
Analysts had expected the shares to list at a 4-5% premium, based on their performance in the unlisted market over the past few days.
According to current regulations, pre-IPO shareholders are not allowed to sell their shares for a period between 6-18 months after the public issue to protect investor interests.
The NSE’s shares got listed on the BSE, and were also admitted into the Metropolitan Stock Exchange of India (MSEI) through the ‘permitted to trade’ category.
This category allows investors to trade a stock on a particular exchange without listing on it.
NSE Managing Director and Chief Executive Ashishkumar Chauhan clarified that the exchange hasn’t reached out to the Securities and Exchange Board of India (SEBI) for permission for its shares to trade on its own platform.
What this adds
The NSE's market debut comes after years of regulatory hurdles and probes over governance and trading practices.
Background
The S&P 500 is defying market concerns over Federal Reserve rate hikes, as investors price in rate increases and focus on positive economic indicators.
What's confirmed
- The National Stock Exchange (NSE) made its historic market debut on Thursday, with its shares listing at Rs 1,800 apiece, marking an around 1% premium over its IPO price of Rs 1,785.
- Revenue from transaction charges climbed 39% to 40.77 billion rupees, driven mainly by higher volumes in equity options and cash market trading.
- Total expenses rose 32% year-on-year to 14.86 billion rupees, reflecting higher provisions, including 2.23 billion earmarked for corporate social responsibility spending and 840 million rupees related to pending settlement applications with the market regulator.
- At 10:51 AM, the stock traded at Rs 1,860.10 a share, up 3.3% from its listing price.
- The exchange listed with a market capitalisation of Rs 4.45 lakh crore, significantly higher than BSE’s current market-cap of Rs 1.33 lakh crore.
- Despite the challenging market conditions, the exchange swiftly launched its public issue after clearing regulatory challenges due to its focus on “inherent value” instead of “market valuation,” said Srinivas Injeti, Chairperson of the stock exchange.
- The NSE had reduced its issue size as many selling shareholders decided to hold onto their shares due to lower-than-expected valuations and growth potential post listing.
- Analysts had expected the shares to list at a 4-5% premium, based on their performance in the unlisted market over the past few days.
- According to current regulations, pre-IPO shareholders are not allowed to sell their shares for a period between 6-18 months after the public issue to protect investor interests.
- The NSE’s shares got listed on the BSE, and were also admitted into the Metropolitan Stock Exchange of India (MSEI) through the ‘permitted to trade’ category.
- This category allows investors to trade a stock on a particular exchange without listing on it.
- NSE Managing Director and Chief Executive Ashishkumar Chauhan clarified that the exchange hasn’t reached out to the Securities and Exchange Board of India (SEBI) for permission for its shares to trade on its own platform.
What's still developing
- India's market regulator cleared the exchange to proceed with an initial public offering through an offer-for-sale by existing shareholders, following years of delays linked to probes and litigation over governance and trading practices.
- BENGALURU, May 5 - India's National Stock Exchange (NSEI.NS), opens new tab posted an 8% rise in fourth-quarter consolidated profit on Tuesday, boosted by growth in equity derivatives trading, as the country's biggest bourse edges closer to a long-awaited market listing.
- The results come as the NSE moves closer to a long-awaited stock market debut after clearing key regulatory hurdles earlier this year.
- “Finally, the day we were all waiting for has arrived. NSE does not belong just to its shareholders, directors, and employees. It belongs to the entire nation,” said Srinivas Injeti, Chairperson of the stock exchange at its IPO press conference on Thursday.
- While listing-day gains remained relatively muted, the stock’s performance in near-to-medium term also depends on the additional equity that may be available to trade once the lock-in period for current shareholders ends, an analyst at a domestic brokerage said.
- A handful of broking firms started coverage on the stock with a positive view post listing.
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