NSE – Files IPO Papers After Nearly a Decade of Regulatory Delays

Expert Analysis:

• The National Stock Exchange (NSE) has officially filed its Draft Red Herring Prospectus (DRHP) with SEBI, reviving its long-delayed IPO plans after nearly 10 years of regulatory hurdles.

• The proposed IPO will be a pure Offer for Sale (OFS) comprising 148.9 million equity shares (around 6% of NSE's equity capital), with the exchange itself not raising any fresh funds.

• Based on prevailing unlisted market prices, the IPO could value NSE at approximately $55–57 billion (₹4.7–5 lakh crore), making it one of India's largest public offerings and among the world's most valuable listed stock exchanges.

• Existing shareholders, including State Bank of India, Temasek, Canada Pension Plan Investment Board (CPPIB), Morgan Stanley, Tiger Global, and other institutional investors, are expected to monetize part of their holdings through the OFS.

• NSE remains the world's largest derivatives exchange by trading volume and India's leading stock exchange, supported by a dominant franchise in equity and derivatives trading.

• For FY26, the exchange reported total income of ₹18,700 crore and net profit of ₹10,302 crore, delivering a strong net profit margin of approximately 53%, highlighting the scalability and profitability of its exchange business.

• The DRHP acknowledges that future earnings may be influenced by regulatory changes in the derivatives market, cybersecurity risks, technology resilience, and evolving market competition.

• While SEBI had earlier granted the exchange a no-objection to proceed with the IPO, NSE continues to pursue settlement of legacy regulatory matters relating to the co-location case, which had delayed its listing since 2016.

• The IPO is expected to become one of the most closely watched listings in India's capital markets, offering investors an opportunity to participate in the country's dominant market infrastructure institution.