BSE Shares in Focus as NSE Files DRHP for India’s Largest Ever IPO

The Indian capital markets are bracing for a historic milestone as the National Stock Exchange (NSE) has filed its Draft Red Herring Prospectus (DRHP) with SEBI. This move has placed rival BSE shares in the spotlight, as investors weigh the implications of the largest-ever IPO in India’s history.

A Benchmark for Valuation in the Exchange Sector

The filing of the NSE's DRHP marks a turning point for the Indian exchange ecosystem. For years, investors have relied on unlisted market valuations and various estimates to assess NSE's worth. The upcoming listing will provide a direct, market-based valuation benchmark between India's two primary stock exchanges.

Market experts suggest that while BSE shareholders might experience a "knee-jerk reaction" due to the competition, the fundamental outlook for BSE's core business remains largely unchanged. However, the sensitivity of BSE's stock price is expected to remain high throughout the SEBI review process and leading up to the eventual NSE listing, which is anticipated later in 2026.

Understanding the NSE Mega IPO Structure

The proposed IPO is structured entirely as an Offer-for-Sale (OFS). According to the DRHP, the issue will consist of up to 14.89 crore equity shares with a face value of Re 1 each. This represents approximately 6% of NSE’s total paid-up equity capital.

In a symbolic twist of market dynamics, NSE’s shares are slated to be listed on the BSE, mirroring the existing arrangement where BSE is listed on the NSE. This move highlights the interconnectedness of the two giants and the maturing nature of the Indian financial markets.

Public Sector Entities to Monetise Holdings

The IPO will see significant participation from major public sector undertakings (PSUs) looking to partially monetise their stakes. Five government-owned entities are set to sell a combined total of approximately 2.37 crore shares.

The breakdown of the participating PSU shareholders is as follows:

Notably, other major stakeholders such as Life Insurance Corporation of India (LIC), Premji Invest (2.35% stake), and investor Radhakishan Damani (1.58% stake) will not be participating in the sale and will retain their holdings.

NSE’s Dominance in the Global Derivatives Market

The IPO comes at a time when NSE's market dominance is at an all-time high. According to the World Federation of Exchanges, NSE remains the world's largest equity derivatives exchange, recording over 36.99 billion contracts traded during Fiscal 2026.

The exchange has also proven to be a robust cash generator. It paid a dividend of Rs 35 per share in both FY25 and FY26, a significant increase from the Rs 18 per share (on a bonus-adjusted basis) paid in FY24. As of March 31, 2026, NSE held its position as India's leader in cash market turnover.

Key Takeaways