NSE IPO Price Band Cut to ₹1,700–₹1,785 from ₹2,400 Peak

NSE Adjusts IPO Price Band Amid Market Volatility

The National Stock Exchange (NSE) has revised its IPO price band, reflecting the current market dynamics and investor sentiment.

Understanding the Price Adjustment

The adjustment in the IPO price band comes as a response to the prevailing market conditions, which have seen fluctuations in the Nifty index, dropping from around 25,000 in June 2025 to approximately 23,200 recently. Market experts suggest that the IPO pricing reflects a more cautious approach, taking into account the broader economic environment rather than solely relying on unlisted market prices.

Currently, NSE shares are trading at ₹1,990 in the unlisted market, which is about 18% lower than the peak price. Arun Kejriwal, a market expert, emphasized that while unlisted shares may appear attractive, they do not always provide an accurate reflection of a company’s value. He noted that genuine price discovery occurs in the listed markets, where the dynamics of supply and demand play a crucial role.

Changes in Offer Structure

The IPO will consist entirely of an offer for sale (OFS) of up to 12.64 crore equity shares by existing shareholders, a reduction from the previously planned 14.9 crore shares. Notably, State Bank of India (SBI) has decreased its proposed OFS from 2.47 crore shares to 1.60 crore shares, while other shareholders, including Bank of Baroda and General Insurance Corporation of India, have also scaled back their offerings.

The IPO has reserved shares worth ₹70 crore for eligible employees, who will receive a discount of ₹170 per equity share. The allocation structure includes 50% for qualified institutional buyers (QIBs), 15% for non-institutional investors (NIIs), and 35% for retail investors, aiming to attract a diverse range of investors.

Market Sentiment and Grey Market Premium

Despite the price cut, the NSE IPO has garnered interest in the grey market, where shares are currently trading at a premium. The latest data indicates a grey market premium (GMP) of ₹188, or approximately 10.5% above the upper end of the IPO price band, suggesting that investor sentiment remains cautiously optimistic.

Umesh Paliwal, co-founder of UnlistedZone, noted that investors who entered the unlisted market between 2018 and 2025 have generally seen positive returns. He advised potential investors to consider entering the unlisted market 2-3 years prior to an IPO to avoid inflated valuations closer to the offering date.

Key Highlights

• The NSE has set an IPO price band of ₹1,700-₹1,785, down from a peak of ₹2,400.
• The IPO is entirely an offer for sale (OFS) of 12.64 crore equity shares.
• SBI and other shareholders have reduced their proposed share sales.
• The grey market premium for NSE shares is currently ₹188, indicating positive sentiment.
• Eligible employees will receive a discount of ₹170 per share.

Investor Note: The adjustment in the NSE IPO price band highlights the importance of market conditions in determining valuations. Investors should carefully evaluate their entry points and consider the implications of the current market environment before participating in the IPO.