NSE investor base swells fourfold as IPO frenzy grows

The National Stock Exchange's shareholder base has quadrupled in three months through June, reflecting the public frenzy ahead of what's expected to be the country's biggest initial public offering, according to merchant bankers and a person aware of the development.

- Ram Sahgal & Sneha Shah

The number of shareholders has jumped to over 160,000 from 39,201 at the end of March in the anticipation of the Securities and Exchange Board of India (Sebi) giving its no-objection certificate (NOC) for the bourse's public offer any day now, the person cited above said on the condition of anonymity.

The spurt has driven the price of NSE's unlisted shares by 45% to around ₹2,250 apiece from ₹1,550 three months back, driving the market capitalization of the country's largest stock exchange to ₹5.6 trillion.

Two merchant bankers Mint spoke with expect the offer price to be higher than the unlisted price. "The offering could be at a valuation of ₹7 trillion, a premium to the current valuation of around ₹6 trillion," one of the two bankers said.

That translates into an offer price of around ₹2,800 per share, a 24% premium to the current share price or ₹2,250 in the unlisted market.