Despite marquee institutional investors trimming stake in National Stock Exchange – NSE due to uncertainty over its proposed initial public offering, the unlisted shares of the exchange operator have risen nearly 7% in the last few days. NSE’s share price in the unlisted space has seen a dramatic rise in the last one year. While trades in this market were happening at ₹1,000 apiece in March 2020, by January 2021 the price rose to ₹1,900. Citigroup sold an estimated 2.2 million shares of NSE at about ₹3,275 apiece on behalf of its institutional clients. Investors are also lapping up the NSE shares as they believe that the shares could fetch a minimum premium of 50% when listed. The stock exchange, which is eyeing a valuation of ₹2 lakh crore, could sell shares at as much as ₹4,100 each. “With NSE deploying more than 30% of its total allocated expenditures on technological advancements, going forward, we expect the company will fetch the valuation of a fintech platform and not just a stock exchange,” said Sarffin Financial Advisors director Rahul Thalia. “The profitability of the company is growing very fast. With more new investors registering with NSE, the volumes are subjected to grow further. Plus, this company doesn’t have a business cyclicality, hence, good for long-term investors. While institutions are seen exiting at a handsome profit after staying invested for seven-eight years, wealthy individuals are buying in anticipation of listing gains.
Edelweiss and JM Financial are said to have sold NSE shares Tuesday at ₹3,200 apiece. “Institutions continue to exit NSE shares with wealthy individuals lapping up those,” said Tushar Bopche, co-founder of BrainStation India, a startup incubator involved in the financial markets. “Transactions in the unlisted market are rising, which in turn will likely push prices up.”
National Stock Exchange of India Ltd
National Stock Exchange of India Ltd (NSE) sustained leadership positions across asset classes in the Indian and global exchange sectors demonstrate the robustness and liquidity of our exchange. NSE was incorporated in 1992. It was recognised as a stock exchange by SEBI in April 1993 and commenced operations in 1994 with the launch of the wholesale debt market, followed shortly after by the launch of the cash market segment. Powered by millions of dreams, hopes, and aspirations, India today is brimming with potential. At NSE, we are driven by this ambition that makes India charge ahead and take a more prominent place on the global stage.
We aim to catalyse India’s growth story by creating investment opportunities, enabling access, and empowering our stakeholders. We work harder, smarter and faster to deliver impact across the investment ecosystem. In a world that changes shape by the second, we constantly reinvent ourselves to redefine the future. Our ambition gives us direction. It pivots and propels us. It is the leap we take from today, towards a brighter tomorrow.
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