NSE makes debut on BSE at ₹1,800 per share, mcap hits ₹4.5 trillion

MD & CEO Chauhan says India's growth will drive the exchange

The National Stock Exchange (NSE) made its debut on the BSE at ₹1,800 per share on Thursday, up by 0.84 per cent from the issue price of ₹1,785. The stock reached an intraday peak of ₹1,878 before settling at ₹1,818.

 

The listing marks an end to a decade-long wait by the largest stock exchange to go public. The exchange’s ₹22,561 crore issue, second largest after Hyundai India, was subscribed over 5.7 times. The stock also saw a block deal worth ₹1,353 crore for over 7.45 million shares in the open auction.

 

Along with the BSE, the NSE shares are now also traded on the Metropolitan Stock Exchange of India (MSE).

 

 

The listing makes the NSE the seventh most valuable stock exchange in the world, at a market capitalisation (mcap) of ₹4.5 trillion.

 

Among all listed companies it India, NSE ranks as the eleventh most valuable, ahead of Sun Pharma (Rs 4.45 trillion), Titan Company (Rs 4.29 trillion), Adani Ports (Rs 4.11 trillion) and Infosys (Rs 4.10 trillion), according to BSE data. Hindustan Unilever is a tad ahead (by Rs 4,221 crore) of NSE, with its market cap at Rs 4.54 trillion, followed by Life Insurance Corporation at Rs 5.14 trillion, according the BSE data.

 

BSE closed with a market cap of Rs 1.3 trillion on Thursday on the NSE. 

 

On valuation, NSE Chairman Srinivas Injeti said that earlier there were discussions on whether to wait or launch the initial public offering (IPO) as the markets were “not in the best shape”. However, it was decided to bring it at this time as it is the inherent value of the exchange that matters.

 

“What we finally decided… is that market value does not matter, the inherent value of the company does,” he said.

 

The exchange had received no-objection from the market regulator, Securities and Exchange Board of India (Sebi), in January to file draft documents. The NSE filed the documents in June and received observation letter or the go-ahead on the same earlier this month.

 

Responding to queries on seeking regulatory approval to permit shares of the NSE to be traded on the NSE, Injeti said: “We all know that regulations evolve. Prior to 2012, even listing was not allowed for market infrastructure institutions. So now, as the markets develop, as things change, if the regulator feels that there is merit in aligning with the global practice of allowing an exchange to list on its own platform or to trade, we will certainly give our input.”

 

On concerns around derivatives volumes, the management noted that while the regulator acknowledges the importance of the segment in the capital market, small investors are losing money and intervention is needed to protect public interest.

 

“India's growth is what the NSE should be looking at. Not this product, that product and all. If India grows, the NSE will grow many times, and that is why I say that what is good for India is good for the NSE. Instruments are only a way to represent what India's growth is,” said Ashishkumar Chauhan, managing director and chief executive officer (MD & CEO) of the NSE.

 

Speaking at the listing, BSE MD & CEO Sundararaman Ramamurthy said, “NSE made many people dream. For many professionals who wanted to become brokers but could not, NSE was instrumental in making it possible. For many people who wanted to be investors and could not, NSE was instrumental in developing the technology to reach all corners of the country and turn them into investors.” 

                   Macquarie, PL Cap, Emkay begin coverage on bullish note  

Domestic and foreign brokerages initiated coverage on the NSE stock. Macquarie initiated coverage with an “outperform” rating calling it ‘The Dominator” due its leading market share; it has set a price target of ₹1,965 for the stock. Among the lot, Emkay has the most aggressive target price for the stock at ₹2,050, up around 12 per cent from its closing price ₹1,818 and mai­n­tains a “buy” rating. PL Capital, has initiated coverage on the counter with an “accumulate” rating and a price target of ₹1,950 per share.    Our Bureau