NSE IPO: The Initial Public Offering (IPO) of National Stock Exchange of India (NSE), the country’s largest stock exchange by total turnover across the cash market and equity derivatives segments, has gone live today. The IPO is looking to raise up to Rs 22,569 crore through an offer for sale (OFS).The NSE IPO saw a steady start on Thursday, with the issue receiving subscription of 22% in the first few hours of bidding on Day 1. Of the 8.86 crore shares offered to the public, the retail investor portion was subscribed 24%. The category has 4.41 crore shares reserved for it.As the IPO is completely an OFS, the money raised through the sale will go to the existing shareholders offering their shares. NSE itself will not receive any proceeds from the issue.The public offering is a major step for NSE after its plans to list on the stock exchanges remained stuck for almost a decade. The delay was linked to regulatory hurdles, including issues arising from the co-location controversy.NSE is positioned to gain from increasing retail participation in the capital markets. However, its earnings continue to depend substantially on transaction volumes.NSE’s post-issue price-earnings (P/E) multiple of 42.9 is lower than BSE’s 53, even though NSE holds a dominant position in the market.The IPO gives investors an opportunity to participate in a debt-free exchange business operating in a tightly regulated industry, where high entry barriers provide significant protection against new competition.Here are 10 key facts about the NSE IPO:
NSE IPO Details
The IPO consists entirely of an offer-for-sale, involving up to 12.64 crore equity shares being sold by existing shareholders. In terms of size, it is the second-largest public issue in India, behind Hyundai Motor India’s Rs 27,870-crore IPO in 2024.NSE has set the price band at Rs 1,700-1,785 per equity share. At the upper end of the band, the exchange will be valued at Rs 4.42 lakh crore, while the valuation at the lower end stands at Rs 4.2 lakh crore.Investors are required to bid for a minimum of 8 shares. At the upper end of the band, a retail investor would need Rs 14,280 for the minimum application.
NSE Offer Second Largest IPO in India
The size of the offering has been reduced from the earlier proposal to sell 14.9 crore shares. This has also brought the total issue size down from the initial estimate of around Rs 30,000 crore. Based on the price band, the IPO is worth around Rs 21,494 crore at the lower end and approximately Rs 22,569 crore at the upper end.Even after the reduction in size, the NSE IPO has exceeded LIC’s Rs 21,000-crore issue from 2022. It remains smaller than Hyundai Motor India’s record-setting offering.
NSE Anchor Investors
A day before the IPO opened, NSE had raised Rs 6,746 crore from anchor investors. The anchor book included state-owned Life Insurance Corporation of India (LIC), Goldman Sachs and Fidelity.Sovereign wealth funds GIC Singapore, Abu Dhabi Investment Authority (ADIA) and Norges Bank also took part in the anchor allocation, along with Eastspring and HSBC Global Asset Management.The issue involves 23 existing investors, including State Bank of India, Canada Pension Plan Investment Board, Aranda Investments, The New India Assurance Company, SBI Capital Markets and Bank of Baroda.
NSE’s Business
NSE was incorporated in 1992 and runs a vertically integrated market infrastructure platform spanning trading, clearing, listing, settlement, market data and index licensing.Its trading offerings include cash equities, mutual funds, commodity derivatives, equity futures and options, exchange-traded currency derivatives, wholesale debt and interest-rate futures.The exchange maintained a dominant position across key segments in FY26. It accounted for nearly 93% of the cash market, 99.7% of equity futures and 68.5% of equity options premium turnover.
NSE Revenue
Transaction charges continue to provide the bulk of NSE’s revenue, but the exchange has also expanded into connectivity, colocation, data and licensing services. Revenue from these segments climbed 9.5% year-on-year to Rs 1,955.9 crore in FY26, contributing 11.8% of operating revenue.As of June 30, 2026, NSE had 132.4 million unique registered investors, 1,328 trading members and 3,005 listed entities. Despite this broad network, trading activity remains concentrated among a small number of participants. The top 10 trading members contributed 46.8% of FY26 revenue from operations.The exchange also faces risks from weaker trading volumes, regulatory changes in derivatives, technology failures, cyber risks and potential delays in executing its diversification plans, according to an ET analysis.NSE’s revenue increased at an annual rate of 6% over the preceding three years, but declined 3% year-on-year to Rs 16,601 crore in FY26. The main reason was a 4% reduction in transaction-charge revenue, which fell to Rs 13,057 crore as activity in the cash market, futures and options segments moderated following regulatory changes.
NSE: Other important financials
Its operating margin before depreciation and amortisation (Ebitda margin) stood at 66.9% in FY26, compared with 66.8% in FY24. The margin was also above BSE’s 64% in FY26.Net profit, meanwhile, rose 11% annually to Rs 10,302 crore in FY26, compared with Rs 8,305.7 crore in FY24. Return on equity declined to 33% in FY26 from 37% in FY24, while BSE reported a higher return on equity of 45%.NSE has no debt and held a net cash position of Rs 17,976 crore as of March 31, 2026.
NSE Market Cap
Investors are valuing India’s largest stock exchange at nearly $46 billion, or about Rs 4.42 lakh crore, at the upper price band of Rs 1,785.At 42.9 times FY26 earnings, NSE commands a higher P/E multiple than most major listed exchanges, including Nasdaq, CME Group, Intercontinental Exchange (ICE), LSEG, HKEX and SGX, according to analysts.NSE’s estimated market value of $46 billion compares with $54 billion for Nasdaq, $99 billion for CME, $88 billion for ICE, $82 billion for LSEG, $67 billion for HKEX and $14 billion for SGX. Its FY26 revenue, however, is estimated at $1.95 billion, significantly below Nasdaq’s $5.2 billion, CME’s $6.1 billion, ICE’s $10 billion and LSEG’s $12.1 billion.NSE’s profitability is a key factor behind its valuation. Its estimated net margin of about 55% is close to CME’s 57% and HKEX’s 59%, and higher than Nasdaq’s 34%, ICE’s 30%, LSEG’s 20% and SGX’s 47%.The subscription window will remain open until September 21. The stock is expected to be listed on September 24.
NSE IPO GMP
In the grey market, the NSE IPO premium was around 9%, pointing to expectations of a moderate gain when the shares list. While the GMP points to a positive mood among unlisted-market participants, it does not indicate the kind of aggressive premium that is often associated with smaller issues. With the offer being large and the valuation already elevated, the potential for listing gains could remain measured.
NSE IPO Risks
Transaction charges contributed nearly 79% of operating revenue in FY26, with options alone accounting for nearly 60%. This leaves earnings exposed to regulatory changes, competitive pressures and fluctuations in stock market activity. Against this backdrop, the issue appears more suited to long-term investors who are comfortable taking on higher risk, according to an ET analysis.With NSE valued at 42.9 times FY26 earnings, the IPO does not come at a low valuation. The company’s performance is also closely linked to trading activity, particularly in options. The 7% GMP points to demand in the unlisted market, but does not suggest an overwhelming level of enthusiasm.
Should you subscribe?
Brokerages have largely maintained a positive view of the issue. Analysts see the IPO as an opportunity for long-term investors to gain exposure to India’s dominant market infrastructure company. Strong margins, a debt-free balance sheet, leadership in the market and an expanding investor base are among the factors supporting the long-term case.At the same time, valuation and regulatory risks remain important considerations.Angel One has a Subscribe call on the IPO. “At the upper price band of Rs 1,785, NSE is valued at a post-issue P/E of 35.4x, compared with BSE’s P/E of 54.2x, making the issue attractive relative to its key listed peer. NSE’s dominant market position, significantly higher revenue and profitability, strong market share in equity derivatives, and long-term structural growth in Indian capital markets provide further comfort,” the brokerage says.“Despite near-term regulatory headwinds to derivatives volumes, we believe the valuation offers a favourable entry point given the company’s strong competitive position and earnings potential. We recommend Subscribe for the IPO,” it adds.LKP Securities has assigned a “Subscribe” rating, putting the implied post-issue market capitalisation in the range of Rs 4.2 lakh crore to Rs 4.42 lakh crore.YES Securities has also recommended “Subscribe”. The brokerage said NSE is being offered at a 21% discount to BSE on a price-to-earnings basis. According to YES Securities, BSE is valued at 54.3 times FY26 diluted earnings, compared with NSE’s 42.9 times valuation at the upper end of the price band.(Disclaimer: Recommendations and views on the stock market, or any other asset classes or personal finance management tips given by experts and analysts are their own. These opinions do not represent the views of The Times of India.)
