After a wait of nearly 10 years, the National Stock Exchange (NSE) has finally taken a major step towards its stock market debut.
India’s for its long-awaited initial public offering (), reviving a listing process that first began in 2016 but was repeatedly delayed by regulatory hurdles and legal proceedings.
The filing marks a milestone not just for the exchange, but also for some of its biggest investors who have waited years for an opportunity to unlock the value of their holdings.
The IPO could generate windfall gains of nearly Rs 25,000 crore for the top shareholders participating in the share sale, with State Bank of India (SBI), Singapore’s Temasek and the Canada Pension Plan Investment Board among the biggest beneficiaries, reported news agency Reuters.
The NSE IPO is expected to be one of India’s largest public offerings, alongside Reliance Jio’s proposed listing, and could value the exchange at around $57 billion, making it one of the world’s most valuable stock exchange operators.
The exchange filed draft papers for its initial public offering (IPO) on Wednesday, reviving a listing journey that first began nearly a decade ago.
Among all shareholders expected to sell shares in the IPO, State Bank of India (SBI) stands to make the biggest gain.
Reuters calculations based on the draft prospectus show that SBI could earn about Rs 4,700 crore from the sale of part of its stake in the exchange.
Other major beneficiaries include:
Morgan Stanley’s Mauritius-based fund MS Strategic, which could make around Rs 2,934 crore
Singapore sovereign wealth fund Temasek, through its Aranda Investment arm, which could gain about Rs 2,067 crore
Canada Pension Plan Investment Board (CPPIB), which could earn roughly Rs 1,871 crore
Overall, Reuters estimates that the top 10 shareholders participating in the offer could collectively pocket around $2.6 billion, or nearly Rs 25,000 crore at current exchange rates.
The listing is expected to be one of the biggest IPOs in India this year alongside Reliance Jio’s proposed public issue.
Unlike a traditional IPO where a company raises fresh capital, NSE’s offering will be a pure Offer for Sale (OFS). Existing shareholders will sell around 6% of the exchange’s equity, while the company itself will not issue any new shares.
The IPO is expected to be worth around $3.3 billion, according to Reuters.
That would make it one of the largest public offerings in India’s capital market history.
Shares of NSE currently trade at around Rs 2,000 in the unlisted market.
Based on those prices, the exchange is estimated to be worth around $57 billion, Reuters reported.
That valuation would place NSE among India’s most valuable companies and make it the world’s fifth-most valuable stock exchange, behind only a handful of global exchange operators.
Sources cited by Reuters said the IPO could be priced at around Rs 1,900 per share, representing a discount of 5% to 10% compared to current unlisted market prices.
At that level, the exchange would still command a valuation close to $57 billion.
The NSE’s IPO journey has been
The exchange first filed IPO papers in 2016. However, its plans were derailed by regulatory investigations, legal disputes and the co-location controversy, which kept the listing on hold for years.
While rival BSE went public in 2017, NSE remained unlisted despite dominating India’s stock market ecosystem.
The breakthrough came earlier this year when the Securities and Exchange Board of India (SEBI) cleared the exchange to move ahead with the public issue.
The filing of draft papers now marks the strongest sign yet that the long wait may finally be coming to an end.
NSE is not just India’s largest stock exchange. It is also the world’s most active derivatives exchange by trading volume.
The exchange has benefited enormously from the retail investing boom in India.
According to Reuters, NSE’s revenue has more than doubled since 2019 to around Rs 18,700 crore in FY26, largely driven by strong growth in options trading.
The exchange reported a net profit of over Rs 10,300 crore in FY26, making it one of the most profitable financial institutions in the country.
NSE now has more than 2 lakh shareholders and sits at the centre of India’s rapidly expanding capital markets ecosystem.
Despite its strong position, the exchange has highlighted certain risks in its IPO documents.
Reuters reported that NSE’s growth could be affected by future regulatory measures aimed at curbing excessive activity in derivatives trading.
The exchange has already seen growth moderate over the past year after a series of regulatory changes in the derivatives segment.
However, market experts remain optimistic about the long-term outlook.
Ravi Varanasi, former group president at NSE and now a market consultant, told Reuters that the exchange’s dominance in the cash market gives it significant room for future growth.
“As India’s market capitalisation deepens, cash trading volumes are expected to rise steadily,” he said.
For investors who bought into NSE years ago and patiently waited through nearly a decade of delays, the IPO may finally deliver the reward they have been waiting for.
(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)