Summary of this article
NSE IPO could raise Rs 30,000 crore, potentially becoming India’s largest IPO ever
The issue will be entirely an OFS, with existing shareholders selling shares
NSE’s strong market share and profits make its valuation crucial for investors
The National Stock Exchange (NSE) has cleared a major hurdle for its much-awaited initial public offering (IPO), with market regulator Securities and Exchange Board of India (Sebi) issuing its observation letter for the proposed issue. NSE had filed its Draft Red Herring Prospectus (DRHP) with the market regulator on June 17, 2026. The exchange can now move ahead with the remaining steps before launching the public issue, which is expected later this month.
Here are key things you need to know about the IPO of India’s largest stock exchange.
Rs 30,000-Crore IPO Could Set New Record
The NSE IPO is expected to raise around Rs 30,000 crore, potentially making it the largest IPO in India on record. At that size, it would overtake Hyundai Motor India’s Rs 27,859-crore issue launched in October 2024. It would also be significantly larger than the Rs 20,557-crore IPO of Life Insurance Corporation of India (LIC) in May 2022.
Entire Issue To Be An Offer For Sale
The proposed issue will be entirely an offer for sale (OFS). Existing shareholders will sell up to 149 million equity shares, representing around six per cent of NSE’s paid-up equity capital. NSE will not issue any fresh shares, which means the exchange itself will not receive funds from the IPO. The money raised will go to the shareholders selling their stakes.
NSE IPO Likely To Open In September
NSE is likely to start the book-building process around September 11, according to a Reuters report. The price band could be announced around September 11-15, while the exchange is expected to list on the BSE in the week beginning September 21, subject to the completion of the remaining regulatory and procedural requirements. Bankers tracking the issue expect NSE shares to be priced at around Rs 2,000 apiece, broadly in line with prevailing pre-listing grey-market levels. The final price, however, will be decided through the IPO process.
NSE Valuation Could Cross Rs 5 Lakh Crore
At around Rs 2,000 a share, NSE could command a market capitalisation of more than Rs 5 lakh crore. That would put the exchange among India’s largest listed companies by market value. The final valuation will depend on the issue price and the number of shares considered after listing.
Profit Fell 15 Per Cent In FY26
NSE continues to be one of the most profitable financial-market infrastructure companies in India, although its earnings declined in FY26. Its total income fell around two per cent to Rs 18,713 crore in the year ended March 2026 from Rs 19,177 crore a year earlier. Profit after tax declined nearly 15 per cent to Rs 10,302 crore from Rs 12,188 crore, while Ebitda fell to Rs 11,098 crore from Rs 12,647 crore. Its net worth, meanwhile, increased to Rs 31,870 crore from Rs 30,165 crore. NSE had no borrowings in FY26.
NSE Dominates India’s Equity Market
The exchange’s biggest strength is its dominance across India’s securities markets. According to its DRHP, NSE accounted for 92.99 per cent of the cash equity market, 99.79 per cent of equity futures and 74.71 per cent of equity options. It also had a 99.48 per cent share of exchange-traded currency futures. This puts NSE well ahead of its closest domestic rival, BSE, across several key segments.
SBI To Be The Largest Seller
State Bank of India (SBI) is expected to be the largest selling shareholder in the IPO. The bank has proposed to sell up to 24.8 million NSE shares. Other shareholders participating in the OFS include MS Strategic (Mauritius), Canada Pension Plan Investment Board, Aranda Investments, Bank of Baroda and Stock Holding Corporation of India. SBI Capital Markets, GIC Re, New India Assurance, National Insurance Company, United India Insurance and Morgan Stanley, through its investment entity, are also among the shareholders selling shares.
BSE Already Listed On Stock Exchanges
NSE’s listing will also give investors a direct way to participate in the business of India’s largest stock exchange. Its closest listed competitor, BSE, raised Rs 1,243.43 crore through its IPO in January 2017 at Rs 805-806 per share. BSE’s issue was also entirely an OFS, with the company not receiving any proceeds from the offering.
NSE’s Earlier Listing Plan Failed In 2016
The proposed listing is also significant because it comes nearly a decade after NSE’s earlier attempt to go public. The exchange had planned an IPO in 2016 but withdrew its plans after regulatory investigations linked to its co-location and dark-fibre facilities, among other issues. With Sebi’s observation letter now issued, NSE has crossed a key hurdle in its second attempt to become a listed company.
