National Stock Exchange (NSE) shares fall below IPO price; here is why

Shares of National Stock Exchange (NSE), the newly listed country's largest stock exchange, dropped as much as 1.77% to hit an intraday low of ₹1,761 mirroring weak trend in the Indian equity markets.

With today's fall, NSE shares traded below its initial public offering (IPO) price of ₹1,785.

NSE shares were facing selling pressure mirroring losses in other capital market related companies like AngelOne, Nippon Asset Management, BSE, HDFC AMC, Nuvama, 360 One Wam, CDSL and Groww.

The measure of capital market related companies on the NSE dropped over 2% to an intraday low of 5,136.80.

These shares were facing selling pressure after the benchmark indices crashed as investor sentiment, which was already subdued owing to surging bond yields in United States and rising crude prices, was further shaken after Maharashtra declared drought in the state.

Brent crude futures for delivery in November rose 3.5% to $108 per barrel on Monday after US President Donald Trump rejected a peace deal from Iran to resolve their conflict and reopen the Strait of Hormuz, keeping tensions in West Asia elevated.

Meanwhile, rising bond yields in US and continuous FII outflows in September also added to weak sentiment for capital market stocks.

NSE IPO

NSE shares opened for trading at ₹1,800 last week, marking a premium of 0.84% over the IPO price.

The IPO was subscribed to 5.71 times. It received bids for 50,58,11,384 shares against 8,86,42,911 shares on offer, as per data available on the BSE website.

The ₹22,561.57 crore IPO was an offer-for-sale of 12.64 crore shares by existing shareholders, including Bank of Baroda, State Bank of India (SBI), SBI Capital Markets, Canada Pension Plan Investment Board, Aranda Investments (Mauritius), New India Assurance Company, Stock Holding Corporation of India, MS Strategic (Mauritius), General Insurance Corporation of India and United India Insurance Company.

As of 3:01 pm, NSE shares traded 1.54% lower at ₹1,761, in-line with the SENSEX which was down 1.3%.