NSE Shares Slip Below IPO Price as Broader Market Sell-Off Weighs

Shares of the National Stock Exchange of India slipped below their IPO price on Monday, September 28, just days after making their stock market debut.

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The stock fell more than 1% from its previous close to touch a low of ₹1,761 per share. That took it below the IPO issue price of ₹1,785.

The decline came during a sharp fall in the broader Indian equity market, with investor sentiment under pressure as oil prices climbed amid a stalemate in US-Iran peace talks.

The weakness also erased part of NSE’s gains from its first day of trading.

NSE market value falls by ₹12,375 crore

NSE had listed on the BSE on September 24 at ₹1,800 per share, representing a 0.84% premium over its IPO price.

The stock strengthened further during its debut session, rising as much as 5.21% over the issue price to ₹1,878. It eventually closed at ₹1,818, ending its first trading day 1.85% above the IPO price.

At the end of the debut session, NSE was valued at ₹4,49,955 crore.

By Monday, its market capitalisation had declined to ₹4,37,580 crore, translating into a reduction of ₹12,375 crore from the level recorded at the end of its first trading session.

The exchange had entered the listed market with a valuation of around ₹4.49 lakh crore, placing it among the world’s seven largest exchanges.

₹22,569-crore IPO subscribed 5.71 times

NSE’s ₹22,569-crore public offering was India’s second-largest IPO.

The issue received bids for 50.58 crore shares against 8.86 crore shares available, resulting in an overall subscription of 5.71 times. Institutional investors accounted for strong demand for the offering.

NSE had set the IPO price band at ₹1,700 to ₹1,785 per equity share, with the final offer price fixed at the upper end of the range at ₹1,785.

The stock’s move below that level on Monday came only four days after its market debut.

Broader market weakness weighs on NSE shares

The decline in NSE shares took place against a weak market backdrop rather than in isolation.

Indian equities fell sharply during Monday’s session as investors remained cautious amid rising oil prices and developments surrounding the US-Iran peace talks.

NSE shares, which had traded as high as ₹1,878 during their first session, fell to ₹1,761 on Monday. The move placed the stock ₹24 below its IPO price at the day’s low.

The fall also marked a reversal from the positive start NSE shares had seen on listing day, when the stock opened above its issue price and maintained those gains through the close.

With NSE having only recently entered the listed market, Monday’s decline brought the stock below its offer price for the first time since its September 24 debut.