NSE IPO GMP on Day 1: What the grey market is signaling
GMP, or grey market premium, is the extra amount at which IPO shares are informally traded before listing. It is not an official market price and can change quickly.
On September 17, the NSE IPO GMP was reported in the ₹125 to ₹165 range during the day. At a GMP of ₹145, for example, the implied price would be around ₹1,930 against the upper issue price of ₹1,785. That would mean a premium of roughly 8%.
The GMP had been much higher earlier in September, touching ₹285 before falling closer to the IPO opening.
GMP can give you an idea of market sentiment, but it isn’t a reliable way to predict the actual listing price. It can change before listing, and the stock can list differently from the grey market estimate.
The Anchor Book: ₹6,746 crore raised before the IPO
Before NSE IPO Day 1 began, the company completed its anchor allocation. NSE allotted shares worth ₹6.746 crore to 189 anchor investors at ₹1,785 per share, which was the upper end of the price band.
LIC was the biggest single investor, with an allocation of around ₹400 crore. Other major investors included Norges Bank’s Government Pension Fund Global, the Monetary Authority of Singapore and the Abu Dhabi Investment Authority.
Domestic investors accounted for 57% of the anchor book, while foreign portfolio investors made up the remaining 43%. Mutual funds received nearly 37% of the total allocation across 98 schemes.
For an IPO investor, the anchor book is useful information because it shows which large institutions participated before the public bidding began. However, anchor participation doesn’t guarantee how the stock will perform after listing.
What are analysts saying about NSE IPO Day 1?
Several brokerages have published their views on the NSE IPO, with some having given the issue a ‘subscribe’ rating. Their reports point to NSE’s strong position in India’s exchange market, including around 93% share of the cash market and nearly 99.8% of the equity futures market.
Some brokerage reports have also compared NSE’s valuation with BSE, its only listed peer. At ₹1,785, NSE’s post-issue P/E is lower than BSE’s, according to these reports.
At the same time, analysts have highlighted regulatory changes in the derivatives market as a risk to watch. These changes have affected derivatives trading volumes.
One other point is important here. The NSE IPO is completely an Offer for Sale (OFS). NSE itself is not raising fresh money through the issue. The shares being sold belong to existing shareholders, including SBI and other institutional investors.
What happens after Day 1?
The IPO closes on September 21. The basis of allotment is expected to be finalised on September 22. If you receive an allotment, the shares are expected to be credited to your demat account by September 23. NSE is expected to list on September 24 on the BSE.
Until the issue closes, the subscription figures can change significantly. QIB and NII participation will be particularly worth watching as the bidding window moves towards the final day.
The GMP may also move during the period, so today’s figure should be treated as a current snapshot rather than an indication of the final listing price.
The bottom line
Day 1 showed early interest from retail and employee investors, while institutional bidding was still limited. The subscription figures over the next few days will give a clearer picture of overall demand.
If you’re considering the IPO, look at the subscription number, valuation, company fundamentals, and the risks. GMP can be useful to track, but it shouldn’t be the only thing you consider.
