Summary of this article
NSE plans to file its DRHP this week
The public issue will be entirely an sale
Valuation in the grey market crosses five lakh crore
The long-awaited initial public offering (IPO) of the National Stock Exchange (NSE) is set to move forward as India’s largest stock exchange is expected to file its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (Sebi) this week, according to a report by news agency Press Trust of India (PTI).
According to the report, sources familiar with the development have said that the draft papers are likely to be submitted to the market regulator on June 15 or June 16.
The proposed public issue is expected to be structured entirely as an Offer for Sale (OFS), and existing shareholders will offload their stakes, and no fresh capital will be raised by the exchange.
NSE IPO’s Key Stakeholders
Given the massive footprint of the exchange, market participants estimate that the NSE is valued at over Rs 5 lakh crore in the unlisted market or the grey market. Notably, if the public issue is conducted at this price, it will be the biggest public issue ever seen in India's capital markets in terms of offer size. Notably, the exchange currently has a broad shareholder base of approximately 1.8 lakh investors.
As the NSE IPO is an OFS, institutional holdings are expected to be in focus. Life Insurance Corporation of India (LIC) is the single largest shareholder and has a 10.72 per cent stake in the exchange, according to the report. Other major shareholders include State Bank of India (SBI) and SBI Capital Markets, and they collectively hold an estimated 7.5 per cent stake. Notable global backers of the company include Aranda Investments, which is a subsidiary of Singapore's Temasek, and the Canada Pension Plan Investment Board (CPPIB). Notably, as many as 20 merchant bankers have been appointed to oversee the issue alongside other intermediaries to manage the public issue.
NSE Q4FY26 Results
In its most recent financial disclosure, the exchange reported an 8 per cent year-on-year increase in its consolidated profit after tax (PAT) for the fourth quarter ended March 31 of FY26, hitting Rs 2,871 crore. Total income for the same quarter jumped 21 per cent to Rs 5,360 crore, fueled by climbing transaction volumes.
NSE IPO: A Brief Timeline
The exchange is set to file draft papers for its public issue after a decade-long journey. Over the past decade-long period, the exchange underwent significant regulatory scrutiny to gain clearances for the public issue.
In December 2016, the exchange filed its initial draft papers with Sebi to raise Rs 10,000 crore. However, the plans were halted in May 2019 when the market regulator passed an order against the exchange in the co-location case regarding unfair market access.
Later in January 2024, a breakthrough arrived when the Securities Appellate Tribunal (SAT) set aside Sebi’s disgorgement order. Following the SAT order, the NSE filed a settlement application in June 2025, offering to pay Rs 1,388 crore to resolve the dispute.
Earlier this year, in January, Sebi granted in principle approval to the settlement and issued a crucial No Objection Certificate (NOC). After securing regulatory clearances, the NSE Board of Directors officially greenlit the public issue on February 6 and paved the way for the exchange to finally resubmit its fresh draft papers this week.
