NSE IPO: Everything You Need to Know About India’s Biggest Listing

The National Stock Exchange (NSE) has officially filed its Draft Red Herring Prospectus (DRHP) with SEBI, signaling the arrival of one of the most significant public offerings in Indian capital market history. With an estimated issue size of ₹30,000 crore, this IPO is poised to be a landmark event for investors and market participants alike.

IPO Structure and Valuation Estimates

The proposed IPO is structured entirely as an Offer-for-Sale (OFS), involving the sale of up to 14.89 crore equity shares with a face value of Re 1 each. This represents approximately 6% of the exchange's total paid-up equity capital. Interestingly, while NSE is the dominant exchange, its shares are slated to be listed on the BSE, following the reciprocal arrangement currently seen with BSE’s own listing.

In the unlisted market, NSE has been commanding premium valuations, hovering around the ₹5 lakh crore mark. Market analysts note that while NSE trades at a high multiple of roughly 45x FY26 earnings, it remains lower than peers like BSE (70x) and MCX (80x). The long-standing overhang caused by the co-location case has finally been cleared, paving the way for this listing.

Major Shareholders and Exit Participants

The OFS includes significant participation from several Public Sector Undertakings (PSUs). Five government-owned entities—IDBI Bank, State Bank of India (SBI), SBI Capital Markets, IFCI, and Bank of Baroda—collectively hold 2.37 crore shares that are part of the sale. Other major institutional players, including Tiger Global and various Mauritius-based funds, are also participating.

However, not all major stakeholders are selling. Life Insurance Corporation of India (LIC) will retain its stake, as will high-profile investors like Premji Invest (2.35% stake) and Radhakishan Damani (1.58% stake).

Financial Performance and Market Dominance

NSE’s financial trajectory highlights its role as a massive cash-generating engine. Revenue from operations rose to ₹16,601 crore in FY26, up from ₹14,780 crore in FY24. While net profit grew to ₹10,302 crore in FY26, the Profit After Tax (PAT) saw a 15% year-on-year decline from ₹12,188 crore in FY25, largely due to tighter SEBI regulations on equity derivatives.

Despite regulatory shifts, NSE’s global standing remains unparalleled. It is the world's largest equity derivatives exchange, having traded over 36.99 billion contracts in Fiscal 2026. Its technological backbone is equally massive, processing an average of 12-14 billion messages daily.

Key Takeaways