- National Stock Exchange Ltd. shares fell below IPO price for the first time since listing
- Shares dropped to a low of Rs 1,761 on the BSE during Monday trading
- NSE's IPO price band upper limit was Rs 1,785 per share
National Stock Exchange Ltd.'s stock fell as low as 1.77% to trade below its IPO issue price on Monday for the first time since listing. The shares slipped to a low of Rs 1,761 apiece on the BSE.
The upper price level for NSE's IPO price band was Rs 1,785. The stock pared some losses to trade 1% lower at Rs 1,774.90 as of 11:50 a.m. on its rival exchange and only trading platform, BSE.
What Should Investors Do?
Avinash Gorakshakar, Founder and Head of Research at Avinash Mentor Research Services said that traders can consider accumulating the stock for the long term (2-3 years)
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"NSE commands an overwhelming market share—roughly 93% in the cash market and nearly 99.7% in equity futures. Despite having fewer total listed companies than BSE, NSE generates more than 3× the operating revenue and roughly 4× the net profit of BSE. If one wants a core, blue-chip market infrastructure asset, then NSE represents the backbone of the Indian financial trading system, and its strong cash-generation ability makes it a better choice over BSE," he said.
The expert concluded that traders can accumulate NSE's shares as the bourse will require cash since it is a large cash-generating machine and even in bear markets, NSE will make a gain.
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NSE IPO Details
NSE IPO was entirely an offer for sale of 12.64 crore shares of Rs 22,561.57 crore. The issue price band was set between Rs 1,700 and Rs 1,785 per share.
The minimum bid size for retail investors is 8 shares, requiring an investment of Rs 14,280 at the upper end of the price band. The issue includes a reservation of up to 4,33,437 shares for employees, offered at a discount of Rs 170 to the issue price.
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