India's NSE IPO draws over $10 billion, traders eye modest listing pop

Business Recorder reported that India's National Stock Exchange (NSE) IPO attracted over $10 billion in bids as bidding closed on Monday. At $2.3 billion, the issue is the second-largest in the country behind Hyundai Motor India's $3.3 billion offering. Shares are expected to begin trading on Thursday, ending a decade-long push by the nation's largest bourse to go public.

The issue drew bids for 505.81 million shares, or 5.71 times the 88.64 million on offer after three days of bidding, according to exchange data. Qualified institutional buyers led demand with bids for 12.68 times their reserved portion, while non-institutional and retail portions were subscribed 6.55 times and 1.39 times respectively. The listing comes as India's primary market picks up, with Jio Platforms of billionaire Mukesh Ambani expected to list later in the year and possibly become the country's largest-ever stock offering.

Analysts said heavy institutional buying suggests investors are prepared to overlook a recent weakness in derivatives trading and back long-term growth in the Indian capital market. A new closing auction, tighter regulation and taxation have weighed on derivatives volumes, though the exchange holds a 93% share of the cash market. Grey market premiums point to gains of 2% to 5% on trading debut, and the valuation sought is up to $46 billion, 15% to 20% lower than in pre-deal roadshows.