Quote on by NSE IPO opening and long-term perspective Thomas J. Priju, Portfolio Manager, Karma Capital
Below the Quote on by NSE IPO opening and long-term perspective Thomas J. Priju, Portfolio Manager Karma Capital
"We see NSE as a structural growth story, underpinned by the continued evolution of India's capital markets. In our view, the exchange has the potential to emerge as a steady compounder over the long term and can be a meaningful long-term holding in a portfolio. In the near term, a resolution of the issues around the new closing auction mechanism (CAS) could provide an additional catalyst for the stock. Over a much longer horizon, as NSE's role in India's financial markets continues to deepen, the business is likely to command a valuation multiple more akin to that of a public utility.
There could be some selling on the listing day as certain pre-IPO investors, including eligible AIFs, can monetise their holdings. Other pre-IPO shareholders remain subject to a six-month lock-in period. This could create some temporary supply and provide a buying opportunity for long-term investors. The IPO saw 43% subscription on the first day, with institutional participation relatively muted at this stage. Given that QIB participation typically builds towards the end of the issue period, we would expect subscription levels to strengthen as the IPO progresses." - Thomas J. Priju, Portfolio Manager, Karma Capital
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