The National Stock Exchange's much-awaited initial public offering appears to be witnessing healthy demand, with a large number of investors showing willingness to buy shares in bulk, according to NSE Managing Director and CEO. Speaking to NDTV Profit, the NSE chief said the anchor book for the IPO appeared to be healthy and indicated strong interest from institutional investors ahead of the public issue.
“Anchor book for IPO seems pretty healthy,” the NSE MD and CEO said, adding that the exchange is witnessing healthy demand for the offering.
The NSE chief said a large number of investors are willing to buy the exchange's shares in bulk, pointing to strong institutional interest in the IPO. His comments came in response to questions on how demand for the issue is shaping up among domestic institutional investors (DIIs) and foreign investors.
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The exchange's IPO is among the most closely watched offerings in India's capital markets, given NSE's dominant position in the country's equity trading ecosystem and the strong retail and institutional participation in Indian markets.
The comments on the anchor book also suggest that institutional demand could provide a strong base for the issue once the IPO opens for broader subscription.
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The NSE chief also addressed the proposed framework around the cash-and-carry settlement, or CAS, mechanism. He said the exchange would accept whatever decision the Securities and Exchange Board of India (SEBI) takes on the proposed CAS framework.
The regulator's proposed changes to the methodology and framework around market settlement have been closely watched by exchanges and market participants, given their potential implications for trading activity and market volumes.
On expectations of a pick-up in market volumes, the NSE chief pointed to the broader trend in Indian equities. Indian markets have largely remained sideways over the past two to three years, he said.
The muted directional movement in benchmark indices has implications for trading activity, particularly as market participants typically see stronger engagement during periods of heightened volatility and clearer market trends.
Despite the largely sideways movement in the broader market, India's equity market ecosystem has continued to see significant participation from domestic investors and strong trading activity across segments.
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