The $2.4 billion initial public offering of National Stock Exchange of India Ltd. was fully subscribed on the second day of bidding, bringing the world's busiest derivatives exchange by volume closer to completing one of the biggest listings in the country's history. Bids exceeded the 88.6 million shares on offer, with the portions reserved for institutional and wealthy investors each covered 1.3 times, according to data on the BSE Ltd.'s website as of 2:45 p.m. local time. Retail investors bid for nearly 65% of the shares set aside for them.

Full subscription brings NSE to the brink of completing a long path to the IPO dating back to 2016, when the exchange first filed. The plan was delayed for years amid regulatory and governance issues. NSE is offering shares at 1,700 rupees to 1,785 rupees apiece, with bidding scheduled to close on Sept. 21. The offering consists entirely of stock sold by existing shareholders. At the top end of the range, the offering would raise about 226 billion rupees ($2.4 billion), making it India's largest IPO after Hyundai Motor India Ltd.'s 279 billion-rupee share sale in 2024.

The price would value NSE at about 42.9 times its earnings for the year ended March. While that's a discount to domestic rival BSE Ltd., it's well above the roughly 24 to 25 times earnings multiple for some of the world's largest listed exchanges. The exchange has the potential to emerge as a company that shows steady growth over the long term and could become a meaningful holding in investors' portfolios, according to Thomas J. Priju, a portfolio manager at Karma Capital.

Still, one of the biggest risks is tighter regulatory scrutiny of speculative derivatives trading, a business central to NSE's profitability. Options trading accounted for about 60% of operating revenue in the year ended March, leaving the exchange exposed to measures aimed at curbing activity in the segment. Before opening its order book, NSE received the buy-in of anchor investors who committed 67.46 billion rupees. They included global funds like Goldman Sachs, HSBC, Fidelity, Eastspring, as well as sovereign wealth funds GIC Singapore and Abu Dhabi Investment Authority. Among local firms, Life Insurance Corp., SBI Funds Management Ltd and ICICI Prudential Asset Management Co. were some of the largest anchor investors in the offering.