NSE IPO Grey Market Shows Decline, Premium Worth Rs 43 Suggests Limited Upside

New Delhi – A day before the NSE IPO is set to list, the grey market premium slid to Rs 43 per share, down from its recent high of Rs 145. The movement points to a muted premium at the time of listing.

Analysts extrapolate a listing price close to Rs 1,828 per share, which is about a 2.41% premium over the top end of the issue price band (Rs 1,785).

Investor sentiment in the grey market has weakened considerably over the past few days. The earlier premium had raised expectations of an 8% upside at listing, but the current figure reflects a sharp correction.

The IPO, open for subscription from September 17‑21, received strong demand, and share allocation was completed on September 22. The listing on the Bombay Stock Exchange is expected on September 24.

With a total issue size of Rs 22,568.94 crore, the IPO was subscribed 5.71 times. Applications covered 50.58 crore shares against the 8.86 crore shares on offer, amounting to bids worth Rs 90,287.33 crore.

Qualified Institutional Buyers led the subscription at 12.68 times, followed by Non‑Institutional Investors at 6.55 times and Retail Investors at 1.39 times.

The price band of Rs 1,700‑1,785 per share was set by NSE. The issue was an offer‑for‑sale only; no fresh equity was issued, with existing shareholders selling 12.64 crore shares.

Transaction fees remain the backbone of NSE’s earnings, accounting for 78.65% of FY 2025‑26 operating income, with options trading alone contributing over 60% of that revenue.

The exchange enjoys dominant market shares: roughly 93% in equity cash, 99.79% in equity futures, 99.48% in currency futures, and 74.71% in equity options (premium turnover) for FY 2025‑26. However, its equity‑options share fell to 68.48% in the first quarter of FY 2026‑27, signaling rising competition.