NSE IPO to unlock ₹30,000 crore, PSU gains in focus
The National Stock Exchange of India has filed its Draft Red Herring Prospectus with SEBI for a proposed ₹30,000 crore initial public offering, entirely via offer for sale, positioning it as India’s largest IPO and a major value unlocking event for early institutional backers such as State Bank of India. The listing, to be done on BSE, will monetise long-held stakes of public sector and global investors and comes after nearly a decade of delays linked to regulatory and legal overhangs.
Market overview and IPO structure
| Detail | Information |
|---|---|
| Issuer | National Stock Exchange of India Ltd |
| IPO size (approx.) | ₹30,000 crore |
| Offer structure | 100% offer for sale, no fresh issue |
| Shares on offer | 14.89 crore equity shares (face value Re 1) |
| Stake diluted | Nearly 6% of paid-up equity capital |
| Listing venue | BSE (self-listing not permitted by regulation) |
| DRHP filing date | 17 June 2026 (with SEBI) |
- Entire IPO proceeds will accrue to selling shareholders, not to NSE.
- Allocation: up to 50% to QIBs, at least 15% to non-institutional, 35% to retail.
- IPO managed by 20 book running lead managers, including large domestic and global banks.
- MUFG Intime India appointed registrar to the issue.
Key selling shareholders and PSU monetisation
| Selling shareholder group | Shares offered (approx.) | Notes |
|---|---|---|
| State Bank of India (SBI) | 2.4–2.47 crore | Largest listed seller in OFS |
| Bank of Baroda | 1.09 crore | PSU bank monetising part of long-held stake |
| Stock Holding Corporation of India | 1.089 crore | Indirect exposure for IFCI which owns 52.86% of SHCIL |
| General Insurance Corporation of India (GIC) | 1.0658 crore | Part of PSU insurance block sale |
| The New India Assurance Company (NIACL) | 1.05 crore | Total acquisition cost about ₹33.6 lakh |
| National Insurance Company | Part of 7.97 crore PSU block | Exact line-item not disclosed in all sources |
| United India Insurance Company | Part of 7.97 crore PSU block | Participating PSU insurer |
| Other institutional investors | CPPIB, MS Strategic Mauritius, Aranda Investments | Foreign and strategic investors trimming stakes |
- Seven PSUs together will offload about 7.97 crore shares, per DRHP.
- LIC, with nearly 11% stake and the largest single shareholder, will not sell in the IPO.
- Premji Invest and investor Radhakishan Damani are also retaining their holdings.
Windfall for early investors
| Investor | Cost of acquisition | Implied return (approx.) | Context |
|---|---|---|---|
| SBI | ₹0.80 per share, total ₹1.98 crore | Profit of about ₹5,086 crore, 2,568x | Based on unlisted price ₹2,055 per share |
| New India Assurance & National Insurance | ₹0.32 per share | Up to 6,422x | Lowest disclosed acquisition cost among PSUs |
| Stock Holding Corporation of India | ₹0.46 per share | About 4,467x | Selling ~1.1 crore shares |
| Temasek (Aranda Investments) | Not disclosed | Around 33x | Singapore sovereign wealth fund arm |
| Morgan Stanley | Not disclosed | Around 31x | Global investment bank investor |
- At ₹2,055 in the unlisted market, NSE’s valuation is around ₹5 lakh crore.
- Early investments date back to the 1990s, with SBI’s stake bought between 1993 and 1999.
- Unlisted NSE shares have risen about 3.28% over the past month.
NSE business profile and financial performance
| Metric | FY24 | FY25 | FY26 |
|---|---|---|---|
| Revenue from operations | ₹14,780 crore | Not specified | ₹16,601 crore |
| Net profit (PAT) | ₹8,305 crore | ₹12,188 crore | ₹10,302 crore |
| Dividend per share | ₹18 (bonus adjusted) | ₹35 | ₹35 |
- PAT in FY26 declined 15% year on year from FY25, partly due to SEBI curbs on equity derivatives activity.
- NSE remains India’s largest exchange in cash equities, equity derivatives and currency derivatives.
- According to the World Federation of Exchanges, NSE was the world’s largest equity derivatives exchange in FY26 with 36.99 billion contracts traded, including NSE International Exchange.
- As of 31 March 2026, NSE was the third-largest globally by number of trades in cash equities.
Technology scale and market reach
| Operating metric | Latest figure | Context |
|---|---|---|
| Daily messages processed | 12–14 billion | Reflects high-frequency trading and retail activity |
| Peak trades in a day | 293.85 million | Achieved on 4 June 2024 across segments |
| Registered investors | 31 million (Mar 2020) to 129 million (Mar 2026) | Rapid expansion of retail base |
| PIN code coverage | Over 99% of India’s PIN codes | Broad geographic penetration |
| FY26 fund mobilisation | ₹20.3 trillion | Capital raised via NSE platform |
- NSE is exploring artificial intelligence for surveillance, compliance and software development.
- Business lines span clearing and settlement, indices, data and analytics, GIFT City trading and commodity-linked products such as electricity futures.
- NSE has approval to set up a national coal trading exchange, adding to non-transaction revenue streams.
Market reaction and valuation commentary
| Stock / Asset | Movement | Notes |
|---|---|---|
| New India Assurance (NIACL) | Up 14% to ₹188 | Boost from being named a selling shareholder |
| IFCI | Up over 4% to ₹94; 28% weekly, 45% monthly | Indirect NSE exposure via 52.86% in SHCIL |
| Bank of Baroda | Up around 2% to ₹287 | Among key PSU sellers |
| SBI | Marginally higher | Largest listed seller in OFS |
| IDBI Bank | Up 17% on Wednesday, 24% weekly, 29% monthly; down >4% later | Gains tied to expectations of participation |
- Stocks of major NSE shareholders rallied after DRHP naming them as selling shareholders.
- NSE trades in the unlisted market at around ₹1,950–2,170 per share, implying about 45x FY26 earnings.
- Research commentary notes this multiple is below BSE at around 70x and MCX at around 80x.
- Settlement of the co-location case removed a key overhang that had delayed the IPO since the first DRHP in 2016.
Investor perspectives on NSE listing
- Market participants view the IPO as a key event for Indian capital markets, improving transparency in NSE’s valuation and enabling price discovery for a widely held but illiquid stock.
- The listing is expected to enhance liquidity for pre-IPO investors who accumulated shares in the unlisted market.
- Some analysts describe NSE as a leading fintech-style play within financial services, while flagging potential earnings volatility from future regulatory changes, especially around options trading.
- “On the whole, it is a great development. And NSE should go ahead and create considerable value for investors.” — Dipan Mehta, Director, Elixir Equities.
FAQs
Q: Will NSE receive any money from this IPO?
- No. The issue is a pure offer for sale of existing shares. All proceeds go to selling shareholders, not to NSE.
Q: Why will NSE list on BSE instead of its own platform?
- Regulations do not permit self-listing by stock exchanges. NSE shares will therefore list on rival BSE, similar to BSE’s own shares trading on NSE.
Q: Which major shareholders are not selling in the NSE IPO?
- LIC, Premji Invest and investor Radhakishan Damani are not participating in the offer for sale and will retain their stakes.
Frequently Asked Questions
Will NSE receive any primary capital from its IPO?
No. The NSE IPO is entirely an offer for sale of existing shares, so all proceeds go to selling shareholders.
How much is SBI expected to gain from selling its NSE stake?
Based on an unlisted price of ₹2,055 per share, SBI’s sale of about 2.47 crore shares implies a profit of roughly ₹5,086 crore.
Why is the NSE IPO considered a landmark for Indian markets?
At about ₹30,000 crore, it is set to be India’s largest IPO, will list the country’s dominant exchange, and will unlock value for long-term institutional investors.
Disclaimer
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