NSE’s Unlisted Shares Surge Amid Rising HNI Interest

5 August 2022
2 mins read
NSE’s Unlisted Shares Surge Amid Rising HNI Interest

Amid stories circulating of an IPO launch for the exchange operator NSE (National Stock Exchange), some offshoot news is also doing the rounds. It seems that institutional investors, doubtful about the proposed IPO move, are divesting their stake in NSE.

However, these unlisted shares of this exchange have upped in value to nearly 7%. Take a look at this whole story below.

NSE Unlisted Shares Fetching Tidy Sums for Investors

In the past year, NSE’s shares have risen dramatically. Here is a table to show you how trades in unlisted NSE stock took place over the year.

March 2020 Rs. 1,000 apiece
January 2021 Rs. 1,900 apiece
November 2021 Rs. 3,500 apiece

These figures indicate a high demand for these shares of NSE, and it has been strategically rising over the past year. Moreover, as per reports, Citigroup sold around 2.2 million equity shares of NSE. This was on behalf of its institutional clients. The shares fetched Rs. 3,275 apiece!

So, why is there this demand?

HNI Buying NSE Shares

Presently, high net worth individuals (HNIs) are buying these National Stock Exchange shares with the expectation that they could yield a premium of 50% should the exchange operator go the IPO route.

Moreover, experts say that the stock exchange could see a valuation of Rs. 2 lakh crores. This means it may sell shares at Rs. 4,100 apiece, which is quite hefty compared to the current unlisted price of Rs. 3,500 (approx.).

Institutional investors are exiting with a massive profit. Meanwhile, HNIs are purchasing in the hope of making gains should the NSE list publicly.

Bottom Line

Most of NSE’s expenditure went towards technological advancement, leading experts to believe that the company will receive the valuation of a Fintech rather than an exchange operator. Moreover, the National Stock Exchange doesn’t have any business cyclicality, which shows its inherent benefits for long-term investors.

 

Frequently Asked Questions

  1. When was NSE (National Stock Exchange) established?

Ans. The National Stock Exchange was established in the year of 1992.

  1. What are the products NSE offers?

Ans. The National Stock Exchange offers products across 3 classes. These 3 classes are the trade of equities, derivatives, and fixed-income securities.

  1. Who is the CEO of the National Stock Exchange?

Ans. The CEO is Mr. Vikram Limaye.

  1. What are the indices of the National Stock Exchange?

Ans. The indices of the National Stock Exchange are NIFTY 500, NIFTY 50, and NIFTY Next 50.