NSE shares fell more than 1% to their lowest level since listing on Thursday, October 22, as the expiry of a one-month IPO lock-in made 190 lakh shares eligible for trading. Nuvama Institutional Equities valued the newly tradable holding at nearly Rs 3,247 crore based on the previous closing price.
Key Takeaways
- The lock-in expiry permits shareholders to trade 190 lakh shares; it does not establish that they will sell.
- NSE touched Rs 1,683.70, more than 10% below its listing-day peak and about 6% below its IPO price.
- Macquarie, Emkay Research and PL Capital retain positive ratings, with targets ranging from Rs 1,950 to Rs 2,050.
Table of Contents
- NSE shares face a larger tradable supply
- Early listing gains give way to a decline
- Brokerages maintain positive views
- Conclusion
NSE shares face a larger tradable supply
At the previous BSE closing price of Rs 1,709, the 190 lakh shares were worth nearly Rs 3,247 crore. During Thursday’s session, NSE fell to Rs 1,683.70.
| Item | Details |
|---|---|
| Macquarie | Outperform; target price Rs 1,965 per share. |
| Emkay Research | Buy; target price Rs 2,050 per share. |
| PL Capital | Accumulate; target price Rs 1,950 per share. |
Early listing gains give way to a decline
NSE debuted on the BSE on September 24 at Rs 1,800, a premium of less than 1% to its Rs 1,785 IPO price. Within an hour, the stock reached Rs 1,878, more than 5% above the offer price, before beginning its retreat.
Thursday’s low left the shares more than 10% below that listing-day peak and about 6% below the IPO price.
Around Rs 41,000 crore had been erased from NSE’s peak market value. With a market capitalisation of approximately Rs 4.27 lakh crore, the exchange ranked 13th among India’s most valuable companies, outside the top 10, according to BSE data.
Brokerages maintain positive views
Macquarie initiated coverage last month with an Outperform rating, citing NSE’s market position, technology, liquidity and cash generation.
Emkay Research’s Buy call rests on India’s capital-market growth prospects, NSE’s longstanding leadership and its ability to adapt to regulatory and macroeconomic changes while delivering profitable growth.
PL Capital, which rates the stock Accumulate, cited cash-market share above 93% and a 100% share in stock and index futures, supported by liquidity, technology and its product range. These ratings and targets are the brokerages’ views, not assured outcomes.
Conclusion
The lock-in expiry expands NSE’s tradable share supply while the stock remains below its IPO price. It does not, by itself, demonstrate selling by the shareholders whose restrictions have ended.
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Disclaimer
This FinanceVelix article provides general information, not personalized financial, investment, legal, or tax advice. Market prices, interest rates and economic conditions can change; investments carry a risk of loss. Facts reflect the material available when published and may change. Check important information independently and consult a qualified professional when needed. Mentioning an asset, company, or service is not an endorsement.
