BSE shares fall 3% as rival NSE gets closer to mega IPO. More pain ahead?

Shares of BSE tumbled more than 3% on Friday after rival stock exchange NSE announced the price band and key dates for its mega initial public offering (IPO), paving the way for its much-awaited market debut.

BSE shares dropped to Rs 3,193 apiece on Friday morning. Notably, NSE has reduced its offer size to 12.64 crore shares, according to the red herring prospectus (RHP) filed on Thursday.

NSE IPO size

The National Stock Exchange (NSE) now aims to raise Rs 22,662 crore through its mega IPO, missing the mark of becoming India’s largest IPO so far by overtaking Hyundai Motor India’s 2024 mega issue, which was valued at around Rs 27,870 crore. The stock exchange’s IPO will remain open for public bidding from September 17 to September 21, while the anchor book is scheduled to open on September 16.


NSE shares are expected to debut on its older peer BSE on September 24.

Also read | NSE IPO GMP at 12% as stock exchange announces price band, key dates. 10 things to know

The company has fixed the price band for the IPO, which entirely comprises an offer for sale (OFS) of 12.64 crore shares by existing shareholders, at Rs 1,700-1,785 apiece. At the upper end of the price band, NSE IPO will be valued at Rs 22,561.57 crore, making it the second-largest IPO in Indian history, after Hyundai India’s market debut in 2024.

At this price, NSE will likely have a market capitalisation of around Rs 4.41 lakh crore. Since there is no fresh issue component in the mega IPO, none of the IPO proceeds will be received by the stock exchange as all will be directed towards the selling shareholders.

CAS impact

After trading in the red for much of the day, Sensex’s indicative price briefly jumped nearly 1,000 points to 75,708 during the closing auction session on its weekly expiry, while the Nifty 50 surged 330 points to 23,762 on Thursday. Most of the gains evaporated by the final close, with the Sensex ending 138 points higher at 74,903 and the Nifty gaining 46 points to settle at 23,478.

Sebi chief Tuhin Kanta Pandey on Thursday said the closing auction session (CAS) is “here to stay”, while acknowledging that liquidity could remain a concern in the initial stages of its implementation.

Also read | CAS wild swing: Sensex soars 1,000 points on expiry day but ends only 138 points higher

What lies ahead for BSE share price?

Bernstein recently initiated coverage on BSE shares with an ‘Underperform’ rating and a target price of Rs 2,820 apiece, implying around 15% downside potential from the stock’s previous closing price of Rs 3,306 apiece.

The international brokerage said the retail participation wave, led by equity derivatives, is showing signs of moderation, and BSE's market share gains are likely to peak out in FY27, after which growth is expected to normalise. It added that exchanges have delivered handsome returns as the wave of retail participation has boosted earnings and valuations. However, given the speculative nature of this growth, Bernstein believes investors need to look beyond top-down factors and focus on a framework based on near-term volume trends, which will drive earnings revisions and valuations.

BSE shares have fallen around 6% in a week and 11% in a month, but overall gained 22% in 2026 so far. In the longer term, the shares of the stock exchange delivered strong returns of 48% over one year, 602% over three years and 2,274% in five years.

This article has been written by Debaroti Adhikary, who is not a SEBI-registered Research Analyst or an Investment Adviser. Debaroti Adhikary and his/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 disclaimers here.