NSE IPO opens with 7% GMP. Should you subscribe to Rs 22,569 crore issue?

The NSE IPO opened for subscription on Thursday, bringing to the market one of the most awaited public issues in India's capital-market history. The grey market premium (GMP) on for NSE's mega IPO hovered at around 7% ahead of the launch, indicating positive sentiment in the unlisted market.

The Rs 22,569 crore issue is entirely an offer for sale of 12.64 crore shares. NSE will not receive any proceeds from the IPO, as the money will go to selling shareholders. The price band has been fixed at Rs 1,700-1,785 per share, with a lot size of 8 shares.

At the upper end of the price band, the minimum retail application comes to Rs 14,280 and the post-issue market capitalisation works out to about Rs 4,41,788 crore. The issue will close on September 21 and the stock is expected to list on BSE on September 24.

NSE IPO GMP today

The grey market premium for NSE IPO hovered around 7%, signalling moderate listing expectations ahead of the opening. The GMP suggests positive sentiment, but not the kind of sharp listing pop usually seen in smaller issues. Given the large size of the offer and the already rich valuation, listing gains may be measured.

Should you subscribe to NSE IPO?

Brokerage views are mostly positive for the IPO. At the upper price band of Rs 1,785, NSE is valued at 42.9 times FY26 earnings. LKP Securities has given a "Subscribe" rating to the IPO and said NSE’s post-issue implied market cap stands between Rs 4.2 lakh crore and Rs 4.42 lakh crore.

YES Securities has also recommended "Subscribe", saying NSE is available at a 21% discount to BSE on P/E. It said BSE trades at 54.3 times FY26 diluted earnings, while NSE is priced at 42.9 times at the cap price.

For long-term investors, analysts say NSE offers a rare chance to own India’s dominant market infrastructure company. Its strong margins, debt-free balance sheet, market leadership and rising investor base support the long-term case.

Also Read: Why can’t NSE trade on its own platform after the IPO, and is it a big deal?

But investors should not ignore valuation and regulatory risks. At 42.9 times FY26 earnings, the IPO is not cheap. The business is also closely tied to trading volumes, especially options. A 7% GMP shows demand is positive, but not euphoric.

NSE IPO business model

NSE is India’s largest stock exchange and runs a vertically integrated platform across trading, clearing, listing, data services and index licensing. Its products span cash market, futures, options, mutual funds, commodity derivatives, currency derivatives, wholesale debt market and interest rate futures.

The exchange has held the top position in India by cash market turnover and equity derivatives turnover from FY01 to FY26. As of June 2026, NSE supported 132.4 million unique registered investors, 1,328 trading members and 3,005 listed entities with market capitalisation of about Rs 474.1 trillion.

NSE IPO GMP Live Updates: NSE IPO opens today with GMP at 7%. Should you subscribe to Rs 22,569 crore issue?

NSE IPO strengths

NSE's biggest strength is its near-dominant market position. Its market share stood at about 93% in the cash market, 99.7% in equity futures and 68.5% in equity options by premium turnover as of June 2026.

YES Securities said almost all of India’s listed equity trading risk flows through one platform. It said NSE’s advantage is not just pricing, but a liquidity cycle where orders go where spreads are tight, companies list where trading activity exists, and deeper markets attract more participants.

Read more: NSE IPO Tracker: Catch all the highlights here

NSE IPO financials

NSE reported revenue from operations of Rs 16,601 crore in FY26, down 3.1% from Rs 17,141 crore in FY25. Profit after tax fell to Rs 10,302 crore from Rs 12,188 crore. In Q1, revenue stood at Rs 4,560 crore, while PAT came in at Rs 3,120 crore.

Despite the fall in FY26 profit, margins remain strong. SBI Securities pegged NSE’s EBITDA margin at 67.6% in FY26 and 77.9% in Q1. PAT margin stood at 62.1% in FY26 and 68.4% in Q1.

NSE IPO risk factors

The main risk is dependence on transaction charges. NSE earned 78.7% of its FY26 revenue from transaction charges. Options alone contributed 60.2% of revenue from operations in FY26. This makes regulatory changes in derivatives an important watch point. YES Securities noted that NSE’s equity options market share by premium turnover has fallen from 96.86% in FY24 to 74.71% in FY26 and 68.48% in the June 2026 quarter.

Disclosure: This article has been written by Podishetti Akash, who is not a SEBI-registered Research Analyst or an Investment Adviser. Podishetti Akash and her ‘relative(s)’ (as defined under Section 2(77) of the Companies Act, 2013) do not hold any financial interest in the companies mentioned in this article as of the date of publication. The views/recommendations mentioned in this article, wherever applicable, are those of the respective SEBI-registered Research Analyst/brokerage and have been reproduced/reported with due attribution. They should not be construed as the views or recommendations of The Economic Times Digital or the journalist. Readers are advised to consider the original research report and make their investment decisions based on their own assessment. Brokerage disclourses here.