The National Stock Exchange of India (NSE) is anticipated to take a significant step towards its initial public offering (IPO) today, with sources indicating the filing of its draft red herring prospectus (DRHP) with market regulator Sebi. This move would mark a major milestone for one of India's most closely watched public offerings, which has faced years of delays due to regulatory hurdles and legacy legal challenges.
Offer for Sale Structure Expected
The proposed IPO is structured entirely as an offer for sale (OFS), meaning the NSE itself will not raise new capital. Instead, existing shareholders will sell a portion of their holdings, receiving the proceeds directly. Among the potential sellers are State Bank of India (SBI) and other public sector entities, though specific details on their stake reductions remain undisclosed.
Current shareholders include The New India Assurance Company, which holds a 1.42 percent stake. IFCI, a public sector non-banking financial company, holds 52 percent of Stock Holding Corporation of India Ltd, which in turn owns a 4.4 percent stake in NSE.
Valuation and Market Impact
The IPO is projected to raise over Rs 20,000 crore. In the unlisted market, NSE shares are currently trading between Rs 1,950 and Rs 2,050 per share, implying a valuation of approximately Rs 5 lakh crore. If successful, this listing would position NSE among India’s most valuable financial institutions.
Piyush Jhunjhunwala, Founder & CEO of Stockify, noted that given NSE’s market leadership, strong cash generation, and dominant share in the exchange business, the company is well-positioned to command a premium valuation. He emphasized that while strong demand is anticipated, institutional investors will scrutinize the valuation to ensure it balances the asset's scarcity value with its future growth potential, stressing that sustainable post-listing performance depends on rational pricing.
Increased Shareholder Activity
Anticipation for the NSE IPO has already fueled activity in the unlisted market, leading to a substantial increase in the number of shareholders. This figure rose from 39,201 in March 2025 to 1,59,394 by June 2025, and further to 1,86,481 by December 2025, as the prospect of the IPO drew closer.