Mega NSE IPO coming as Sebi approves Rs 30,000 crore public offer

The National Stock Exchange’s long-awaited IPO, which is expected to raise around Rs 30,000 crore, has moved a step closer, with Sebi approving the exchange’s draft offer plan on Friday, according to the regulator's website. The approval is a major step for one of India’s most closely tracked public issues and comes at a time when the IPO market has sharply revived after a dull first half.

NSE had filed its draft offer documents in June and has been preparing investor roadshows for what is expected to be one of the biggest IPOs of the year.

According to the DRHP, the IPO, with a face value of Rs 1, will entirely an offer-for-sale of up to 14.89 crore shares by SBI and other key existing investors.


The approval marks the ending of a listing process first attempted in December 2016, when NSE filed its first DRHP for a Rs 10,000-crore issue before the process was stalled by the co-location controversy.

The IPO structured entirely as an offer for sale means that the exchange itself will not raise any fresh capital. Instead, the proceeds will go entirely to existing shareholders who are looking to dilute a portion of their holding in the bourse.

The development also comes after the Supreme Court dismissed Sebi’s appeal against NSE in the co-location case, removing a key regulatory overhang for the exchange’s listing plans.

NSE currently trades in the unlisted market at around Rs 1,975-2,000 per share, implying a valuation of roughly Rs 5 lakh crore. That would make it one of the most valuable listed financial institutions in India once the public issue is completed.

Analysts say the exchange is already commanding premium valuations in the unlisted market. "NSE remains a capital-light near-monopoly. At around Rs 1,970-2,000 in the unlisted market, it trades near 45x FY26 earnings. That's rich, but below BSE at around 70x and MCX at around 80x," Nitant Darekar, research analyst at Bonanza had said earlier.

Financials

NSE reported a 7% year-on-year growth in in its profit for the June quarter, helped by higher transaction charges and strong operating margins. The exchange posted net income of Rs 3,120 crore for Q1, while total income rose 9% YoY to Rs 5,252 crore.

Analysts caution that investors should remain mindful of the exchange's dependence on derivatives trading volumes. Earnings remain linked to derivatives trading activity, which can be volatile, especially after regulatory changes in the futures and options segment.

NSE's IPO is expected to be one of the marquee issues of 2026, along with Jio Platforms. Investment bankers expect September to remain busy for primary markets, with IPOs worth nearly $4 billion lined up and NSE among the expected offerings.

About NSE

NSE commands a near-total share of trading volumes across India's two most actively traded asset classes, a position that has made it one of the most closely watched unlisted names on Dalal Street for years.

The company has played a pivotal role in transforming the capital markets in India by democratizing access and enabling efficient capital flows through a transparent, technology-driven ecosystem.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)