
National Stock Exchange (NSE) of India continues to remain under the spotlight of investors for the last few days on the back sharp up move in the unlisted market and IPO buzz following the comments from Sebi Chief Tuhin Kanta Pandey. The leading stock exchange has been trying to obtain a 'no objection certificate' from Sebi to launch its much-awaited IPO.
With the stock rising nearly 60 per cent to Rs 2,400 from Rs 1,500 in the last 15 days, NSE is currently valued at Rs 5.88 lakh crore, considering its outstanding share capital of 24.50 crore shares. At the current valuations, even if NSE dilutes 10 per cent of its equity, NSE is set to raise roughly Rs 55,000-60,000 crore via primary route.
If this analysis and valuation of NSE's IPO holds true, the primary offering of India's leading stock exchange is set to become the biggest ever IPO of India stock market so far. It is set to break the record of Hyundai Motor India, which raised nearly Rs 28,870 crore from its primary offering. Market experts also see NSE to break this record to be the largest IPO of Dalal Street so far.
Avinash Gorakshakar, Head of Research at ProfitMart Securities believes that NSE's IPO will be the biggest IPO of the Indian stock market so far. "NSE is a cash cow and we believe that NSE is expected to do very well as capital markets penetration in India is still limited and it has significant headroom to grow strongly in the next 5 years ahead," he adds.
Echoing the similar tone, Kranthi Bathini, Director of Equity Strategy at Wealthmills Securities said that considering the current valuations and high demand, NSE shall absolutely be the biggest IPO Indian stock market so far, surpassing the fundraising by LIC of India and Hyundai Motor India. "NSE's IPO is just a matter of some time. It will be the mother of all primary offerings," he said.
Unlisted shares of National Stock Exchanges of India (NSE) have been soaring higher on the back of its strong financials performance, solid market share, rising interest from the retail investors after new ISIN and its positioning in the global markets. These factors have been the major triggers for the stock price movement.
NSE could be the largest IPO of Indian history. In the last three decades, NSE has emerged as a pioneer in India's financial landscape, said Simranjeet Singh Bhatia, Senior Equity Research Analyst at Almondz Global. "As India rises, the world's fifth-largest economy and fourth-largest capital market in the world, NSE stands as the largest exchange globally by daily order volume and trades," he said.
"Going Forward, NSE will solidify its position as a global leader in financial markets, driving growth and prosperity for all stakeholders . With rising valuation and strong private market interest suggest a significant level of confidence in NSE's IPO. While the exact size is difficult to predict, estimates suggest it could be one of the biggest public offerings ever in India," Bhatia adds.
NSE is ranked the biggest derivatives exchange and second largest in equities by number of trades worldwide. NSE is also the fifth largest stock exchange in the world in terms of market capitalization. This solid market capitalization put NSE among the top-10 most valued companies of India ahead of Bajaj Finance and Hindustan Unilever.