NSE’s Unlisted Shares Hike Amid Rising HNI Interest

Institutional investors are disinvesting their stock in the National Stock Exchange due to uncertainty over its IPO launch; still, the unlisted shares of NSE have witnessed a surge of 7%. Before diving into the whole scenario, let’s understand NSE. 

Established in 1992, National Stock Exchange is India’s largest financial market and the fourth biggest market in India by volume. It conducts transactions in equity and wholesale debt. Moreover, NSE is India’s first exchange operator that offers fully automated electronic trading. 

Exchange operator NSE’s unlisted share price has dramatically increased in the last two years. While the NSE unlisted share price was  ₹1000 apiece in March 2020, by January 2021, the unlisted share price hiked to ₹1900. NSE’s pre-IPO share price in September 2022 is ₹3400 apiece. 

These numbers show a booming demand for NSE’s unlisted shares, and it has been prospectively increasing over the last two years. Additionally, as per an Economic Times report, Citigroup sold approximately 2.2 million equity shares of the National Stock Exchange on the side of its institutional clients. These unlisted shares fetched a price of ₹3275 apiece. 

So, now the question can be raised: if institutional investors are disinvesting NSE’s unlisted shares, why is there an increasing demand for NSE’s pre-IPO stock? 

High Net Worth Individuals Are Showing Interest To Buy Unlisted Shares Of NSE

Currently, high net worth individuals (HNIs) are looking keen to buy unlisted shares of NSE with the anticipation that they could fetch a 50% premium when the exchange operator goes public. Additionally, the experts expect that NSE, which focuses on a valuation of ₹2 lakh crore, can sell its unlisted shares for as much as ₹4100 apiece. Institutional investors have disinvested shares in the excitement of huge profit, and HNIs are purchasing shares in anticipated gains when NSE will get listed. 

As NSE is utilising 30% of its dispensed expenditures on technological progress and automation, experts are anticipating that the entity will succeed in getting a valuation as a fintech company. As NSE’s profitability is growing leaps and bounds, and new investors are registering with the National Stock Exchange, these volumes are expected to increase. 

There is no denying that NSE has made a tremendous strategic plan. First, announcing its listing in IPO and then surged in its unlisted share price. This is a golden chance for independent investors who are curious to invest in unlisted space with high gain expectations, and they will get inspired by HNIs who are investing in NSE pre-IPO shares massively. 

Factors Affecting Buying Decision

Growing HNI interest in NSE unlisted shares showed they assess different factors that influence the prices in the unlisted market. Here are a few factors that affect the buying decision for unlisted shares:

  • Retail investors will search for the availability of NSE unlisted shares, as limited buyers and sellers in the market reduce the price negotiation.
  • With the growing interest in HNI, NSE’s unlisted pricing will be raised, and once they start buying the shares, the price fluctuation will further accelerate. So, NSE share price becomes a metric to decide on whether to buy or not.
  • IPO planning also becomes a factor in the decision; as NSE is planning an IPO, more investors will look down to buying these shares to get early access and enjoy the high profit margins.
  • Risk assessment is a crucial factor for buying decisions as investor often looks toward the unlisted market for diversifying their risk.

Independent investors or investment beginners who don’t know how to buy unlisted shares of NSE can get the assistance of a trusted broker. An established intermediary not only helps in understanding the stock market but also suggests potential options to invest in and make a big profit. Stockify is a prominent stock broking e-platform that allows investors to get early access to unlisted shares in India. Moreover, the experts at Stockify remain close with the investor throughout the investment journey.

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