NSE files for IPO, aiming to become India's largest public offering

After years of delays due to regulatory challenges, the National Stock Exchange (NSE), India’s largest stock exchange, has officially filed its draft papers for an initial public offering (IPO). The filing, submitted late Wednesday, proposes an offer for sale (OFS) of up to 14.89 crore shares, representing nearly a 6% stake in the company. Market estimates suggest the offering could raise Rs 20,000 crore, with some projections indicating it might go as high as Rs 30,000 crore. If priced at the upper end, this could make the NSE IPO the largest in India’s history.

An OFS involves the sale of existing shares by promoters or early investors, rather than issuing new shares. India’s largest IPO to date, Hyundai Motor India’s Rs 27,870 crore offering in 2024, was also a pure OFS issue. The NSE IPO could surpass this record if its valuation aligns with private market trading levels, where NSE shares are currently priced at approximately Rs 2,035. This valuation implies a potential IPO size of Rs 30,000 crore.

The NSE’s projected valuation of over Rs 5 lakh crore would place it among India’s 10 most valuable listed companies, surpassing Infosys, which has a market capitalization of Rs 4.6 lakh crore. Reliance Industries, India’s most valuable company, leads the list with a market capitalization of Rs 18 lakh crore, followed by HDFC Bank and Bharti Airtel.

The exchange’s dominance in India’s financial markets is a key driver of its premium valuation. As of FY26, NSE held commanding market shares across various trading segments: 92.99% in cash equities, 99.79% in equity futures, 74.71% in equity options, and 100% in exchange-traded currency options. Additionally, it has ranked as the world’s largest exchange for equity derivatives contracts traded for seven consecutive years.

NSE’s financial performance further underscores its strength. In FY26, the exchange reported consolidated revenue of Rs 16,601 crore, up from Rs 14,780 crore in FY24, and net profit of Rs 10,302 crore, compared to Rs 8,305 crore in FY24. Its revenue advantage over competitors like BSE, which reported Rs 4,834 crore in FY26, highlights its leadership across multiple market segments.

Experts believe NSE’s valuation, pegged at roughly 40 times its projected FY26 profit after tax, is consistent with global exchange peers. Factors such as its sustained profitability, dominant market position, and the rapid growth of India’s retail investor base make it an attractive long-term investment. The exchange’s diversified revenue streams and global leadership in derivatives trading further bolster its standing.

If successful, the NSE IPO could redefine benchmarks for public offerings in India, cementing its position as a cornerstone of the country’s financial ecosystem.