NSE IPO Observation Letter Boosts Market Sentiment, Yet GMP Fall Hits Major Stocks

The National Stock Exchange (NSE) received a SEBI observation letter on Friday for a projected initial public offering of roughly ₹30,000 crore, a step that typically lifts market confidence. However, the same day the exchange’s grey market premium (GMP) slumped sharply, dragging down the shares of two large listed entities – New India Assurance Company Limited (NIACL) and IFSC.

NIACL’s intraday low hit ₹199.52, a 13.71 percent dip from its previous close of ₹231.20. By midday the stock was trading at ₹209.50, down 9.50 percent. The insurer currently owns a 1.42 percent stake in the NSE, a holding that had risen close to 30 percent in recent weeks as the exchange prepared its IPO.

IFSC experienced a similar decline, with its price falling to ₹92.75 – a 9.5 percent slide from the prior close of ₹102.51 – and later trading around ₹94.16, down 8.11 percent. The firm holds a 52 percent stake in SHCIL, which itself possesses about a 4.4 percent interest in the NSE, and both entities had enjoyed a rapid surge of up to 40 percent before the GMP correction.

The NSE’s GMP fell from ₹310 per share on September 5 to ₹221 on September 8, underscoring the volatility surrounding the upcoming offering. The observation letter indicates that the exchange is now in the final procedural phase, pending submission of a red‑herring prospectus to SEBI. The IPO will be structured as an Offer‑For‑Sale, meaning proceeds go to current shareholders rather than the exchange, with roughly 14.89 million equity shares – about 6 percent of its paid‑up capital – slated for issuance.