Mumbai, Sep 24 The National Stock Exchange, which made its stock market debut on Thursday, does not see any change in its duties as a stock trading marketplace and responsibilities as a commercial entity, its chairperson Srinivas Injeti said.
However, if the two lines intersect, the former will have an overriding advantage, he said.
The NSE as an institution has contributed immensely in transforming the Indian capital market from a relatively small market serving a privileged few to a nationwide and vibrant capital market today, he said.
Earlier in the day, shares of the National Stock Exchange started trading on the BSE. The stock listed at Rs 1,800 apiece, up a mere 0.84 per cent from the issue price of Rs 1,785.
The public issue marked a significant milestone for the NSE, whose listing plans had remained stalled for nearly a decade amid regulatory hurdles, including those linked to the co-location controversy.
“Often there is a lot of debate whether a public utility like an exchange should get listed. Whether it carries an inherent tension of competition between what are the public interests and what are the stakeholders’ interests. While at a superficial level there may appear to be some competition, it is our belief that if we look deeper, there is a complete convergence between the two,” Injeti said at the listing ceremony.
He said NSE has a dual role — a regulatory duty to maintain market integrity and protect public interests, and the responsibility as a business entity to promote its interests.
“It is important for the entity to focus on its financial performance, to give returns to our shareholders. But it is very clear that if two lines intersect, if two duties intersect, the former will have an overriding advantage,” Srinivas asserted.
“You can’t do business without protecting public interests. There is no competition. …If something is not good for the market, it is not good for you. So, guided by the philosophy of responsible business and sustainable business, I think we are just at the beginning of a take-off,” he added.
The Rs 22,569-crore initial public offering of NSE, the country’s second-largest IPO, received nearly 6 times subscription on the final day of bidding on Monday, led by strong demand from institutional buyers.
The offering was India’s second-largest public issue after Hyundai Motor India’s Rs 27,870-crore IPO in 2024. The IPO surpassed LIC’s Rs 21,000 crore offering in 2022.
“I think it is very clear that it is a large IPO. When we got the signing approval in January, we wanted to ensure that the IPO is launched as soon as possible. But later, as we went along, the market was not in the best of its shape,” he said.
“What is most satisfying is that even though it was a large size issue, it was oversubscribed in all the categories. What is particularly satisfying is that the retail industrial investor (participation) also saw an oversubscription. I don’t think any IPO had so much distribution and participation.”
Stating that there were times when it was thought whether this was the best time to launch the IPO, he said, “What we finally decided and made a good consensus is that market valuation doesn’t matter. Inherent value of the company matters.” “And if you believe that the company has inherent value, then there is no good time or bad time,” he said.
NSE CEO, Ashish Kumar Chauhan, said “Broadly speaking we have been acting as a listed company practically for the last four-and-a-half years. We have been giving quarterly results, we have been giving material events as if we were listed all the time and we also had investor calls every quarter. So effectively, we were a listed company for all practical purposes and so in some ways, the additional compliances are very few compared to what we were doing already.”
In terms of the exchange’s subsidiaries, they will continue to do work as they have been doing before, he said and added that, “at the same time, if some of them (subsidiaries) become large and the regulators feel that they need to be listed like what happened with the depository (NSDL), we would have to list them.”
The mega IPO generated nearly Rs 90,300 crore demand against the Rs 22,568 crore issue size.
The IPO had an Offer for Sale (OFS) of up to 12.64 crore equity shares by existing shareholders.
The exchange had fixed a price band of Rs 1,700-1,785 per equity share for the IPO.
NSE was incorporated in 1992 and recognised as a stock exchange by SEBI in April 1993. It commenced operations in 1994 with the launch of wholesale debt market, followed shortly after by the launch of the cash market segment.
(PTI News)
