NSE Unlisted Shares Surge 46 Per Cent In A Month Ahead of IPO – Too Hot Or Fairly Priced?

NSE Unlisted Share Price, IPO: Shares of the National Stock Exchange (NSE) in the unlisted market have spiked over 46 per cent in over a month amid a rising interest among retail traders ahead of its initial public offer (IPO). According to Wealth Wisdom Private Ltd, which facilitates trading in unlisted securities, NSE shares are currently trading at Rs 2,300 apiece, up from Rs 1,575 just a month ago.

Incidentally, the number of shareholders in NSE recently crossed the one lakh mark, making it one of the largest unlisted companies in India by investor base. This is a milestone that even many listed firms have yet to achieve.

What’s Driving Rally In Unlisted NSE Shares

The recent rally in NSE’s unlisted shares came after reports emerged last week that the Exchange is moving closer to resolving the long-pending co-location case with the markets regulator, the Securities and Exchange Board of India (Sebi). This has revived hopes of its long-delayed IPO.

According to a Bloomberg report dated May 27, NSE is reportedly offering a record Rs 1,000 crore to settle the dispute with the market regulator. Sources familiar with the matter told Bloomberg that the proposed settlement could clear a major hurdle for the Exchange’s public listing, which has been on hold for several years.

While this development has added fresh fuel to the recent rally, NSE’s unlisted shares have already been on a strong upward trend. Over the past year, the stock has surged over 105 per cent, and in the last two years, it has gained more than 250 per cent. Over a five-year period, NSE shares have delivered a staggering 11x return.

Yogesh Anand, Equity Research Analyst at Moneyvesta attributes this long-term rally to the Exchange’s robust financial performance, market dominance, and increasing investor interest. Anand noted that NSE reported a consolidated net profit of Rs 12,188 crore in FY25, a 47 per cent rise year-over-year (YoY), and posted a total income growth of 17 per cent YoY, which came in at Rs 19,177 crore.

Anand told Outlook Money: “NSE commands a dominant 93 per cent share in India’s equity cash market, largely due to its advanced technology infrastructure, seamless trading experience, and deep liquidity across segments. Despite operating in a virtual duopoly, it clearly leads in trading volumes and overall market influence.”

NSE has over 19.2 crore active demat accounts as of the end of FY25. On that account, Anand added, “It has become the default platform for most retail investors. On the global stage, NSE ranks as the fifth-largest Exchange by market capitalisation, backed by solid institutional support.”

Could The Rally Lead To A Higher IPO Price

According to the research analyst, the strong rally might suggest a higher IPO pricing as against earlier expectations. He said, “It’s important to view it in a context that NSE had originally filed its Draft Red Herring Prospectus (DRHP) in 2016 but withdrew it in 2019 due to regulatory and governance setbacks. Since then, the Exchange has made significant progress in addressing these issues.

In March 2025, it submitted a fresh request to Sebi for a No Objection Certificate (NOC), indicating its renewed IPO plans.”

NSE Valuation Ahead Of IPO

Anand pointed out that NSE has a price-to-earnings (P/E) ratio of 33.5 and a price-to-book value (P/B) ratio of 13.5. Compared to its peer, BSE (formerly Bombay Stock Exchange), which trades at a higher P/E ratio of around 74, NSE appears more reasonably valued, he suggested.

“Even with the recent jump in its unlisted share price, key valuation indicators show that NSE is still fairly valued, considering its strong earnings potential and leading position in the industry,” Anand said.