The National Stock Exchange (NSE) has raised ₹6,746 crore from anchor investors before the IPO is opened to the general market subscription. The initial public offering is set to begin bidding on September 17. That capital has been drawn from a wide range of 189 anchor investors, to which the exchange assigned a total of 3.78 crore equity shares. The shares were allotted at ₹1785 per share. It is the maximum bound of the predetermined price band in the exchange.

Strong institutional interest and diverse participation

The anchor bidding system saw heavy interest from institutions, with a total of up to ₹1.2 lakh crore pulled in, as revealed by market sources. This aggregate demand resulted in an oversubscribed anchor issue, with approximately 20 times the available quantity subscribed. 

Participation far exceeded expectations and indicates a strong interest from International and local Institutional investors before the public subscription period. High-profile financial institutions responded with considerable interest to the anchor book. 

Some of the important bidders during the anchor bidding process were the Life Insurance Corporation of India, Government Pension Fund Global of Norway, Abu Dhabi Investment Authority, GIC of Singapore, Fidelity, and Societe Generale. 

Among all the participants, the Life Insurance Corporation of India was the largest anchor bidder as it bought equity shares worth roughly ₹400 crore. The Government Pension Fund Global of Norway invested approximately ₹250 crore in the anchor book. Societe Generale’s offshore arm was also a major participant in the anchor tranche, bidding for shares at ₹316 crore.

Breakdown of anchor allocations and valuation expectations

Domestic financial institutions accounted for the largest portion of the total anchor allotment. Roughly ₹3588 crore came from local investors, representing around 53% of the total anchor book allocation. More than 25 mutual funds participated with large placements, while 11 major insurance and pension funds joined the fray with significant orders.

A significant portion of this anchor offering was also subscribed by overseas financial investors, commonly referred to as foreign portfolio investment or FPI. Foreign portfolio investors made around ₹2,883 crore of the allotment to the anchor book, which accounts for nearly 43% of the total allocation. The relative engagement from local institutions and international portfolio managers illustrates wide institutional demand by geographic investor segments.

The initial price band set by the National Stock Exchange for the IPO was fixed at ₹1,700 to ₹1,785 per equity share. The public subscription period starts on the 17th of September and will officially close on the 21st of September. The entire public issue is conducted as an offer for sale. 

However, the public issue will be entirely an offer for sale, meaning that the National Stock Exchange will not receive any new funds or primary proceeds from the issue. The proceeds of this issue will be received directly by existing shareholders selling their warrants.

In this mega public issue, the exchange has proposed to raise a total of about ₹22,569 crore. Achieving this funding target makes the issue one of the largest public initial offerings in India’s capital markets. A total allocation of ₹6,746 crore provides a solid foundation for the overall transaction, while the rest of the subscription period continues to be available to general investors.

Conclusion

The successful completion of the anchor round valued at ₹6746 crore represents a significant financial milestone for the National Stock Exchange in the lead-up to the public issue. The total anchor bids placed on the exchange amounted to ₹1.2 lakh crore, indicating strong institutional demand at the high price ceiling of ₹1,785 per share.

The exchange is entering the public subscription window with strong backing from both domestic institutions as well as international fund investors. As market interest is growing around one of the largest public offers, the performance of the anchor book reflects on existing shareholders offloading their stakes through the offer for sale of ₹22,569 crore.