NSE investors cheer on BSE’s listing

Asia’s oldest bourse BSE listed at a heavy premium to the offer price on Friday. The BSE stock was available at the IPO price of Rs 806, and the stock was listed at Rs 1085, a 35 per cent premium. It hit a high of Rs 1,200 in an early trade.

BSE had received huge oversubscription to the issue of more than 51.22 times. The bourse has raised about Rs 1,243 crore. The retail investors have given a good response as the retail portion was oversubscribed by 6.3 times. However, the qualified institutional buyers (QIBs) and NII categories were oversubscribed by 48.64 times and 159.03 times, respectively, at the closing of the bidding.

After successful listing of BSE, the investors of NSE are cheering. NSE has already applied for an IPO and filed DRHP with SEBI. NSE is a clear leader, capturing all the volumes in the derivatives space. Approximately 90 per cent of the combined volume in the two exchanges takes place in the index and equity derivative segments. Within the equity segment, derivatives volume is 14 times that of cash segment.

There are 5911 companies listed on the BSE as compared to 1808 on the NSE, but the volume is higher on the NSE. NSE’s top 50 stocks account for two-third of the volumes, which are common to both the exchanges.

Going forward, the NSE shareholders, who will be offering their shares during the forthcoming IPO, watched with delight the listing price of BSE. NSE IPO can now be expected to come at a much higher valuation.