The much-anticipated IPO of the National Stock Exchange of India (NSE) opens for subscription today, September 17, with investors looking at one of the country’s biggest public offerings even as the grey market premium (GMP) has taken a sharp hit ahead of the opening.
The Rs 22,561.57 crore NSE is a pure offer for sale (OFS), with 12.64 crore shares being offered by existing shareholders. NSE itself will not receive any proceeds from the issue. The IPO will remain open until September 21, with allotment expected on September 22 and listing tentatively scheduled for September 24 on the BSE.
The price band has been fixed at Rs 1,700-1,785 per share. The lot size is eight shares, meaning a retail investor applying at the upper end of the price band will need Rs 14,280.
But while the IPO has attracted huge interest, its grey market premium has fallen sharply.
The latest available GMP for the NSE IPO is Rs 125, according to the data shared as of 6:58 am on September 17.
At the upper price band of Rs 1,785, this implies an estimated listing price of around Rs 1,910, or a 7% premium to the issue price.
That is a significant cooling from last week.
The GMP stood at Rs 218 on September 11, according to the trend data provided. It then moved to Rs 208 on September 12, Rs 210 on September 13, Rs 208 on September 14, Rs 160 on September 15, Rs 145 on September 16 and Rs 125 on September 17.
That means the GMP has fallen Rs 93, or around 43%, from Rs 218 on September 11 to Rs 125 on the morning the IPO opens.
The estimated listing premium has consequently fallen from more than 12% last week to around 7% now.
It is worth remembering that GMP is an unofficial market indicator and does not guarantee the listing price or returns.
The IPO is a book-built issue with a price band of Rs 1,700-1,785 per share. The total issue size is Rs 22,561.57 crore and comprises entirely an OFS of up to 12.64 crore equity shares.
Of the issue, 50% is reserved for qualified institutional buyers (QIBs), 15% for non-institutional investors and 35% for retail investors. The market lot is eight shares.
The NSE IPO will close on September 21 for bidding. The tentative listing date is September 24.
NSE has also already received strong anchor participation. Shares worth Rs 6,746 crore were allocated to anchor investors on Wednesday at Rs 1,785 apiece, the upper end of the price band.
NSE occupies a dominant position in India’s capital markets.
According to Angel One’s IPO note, NSE had 261.36 million registered investor accounts and 132.37 million unique registered investors as of June 30, 2026. It had 1,328 trading members and 3,005 listed entities, with the market capitalisation of listed entities at Rs 474.08 trillion.
The exchange’s market share is particularly strong in derivatives. In FY26, NSE had a 92.99% share of the cash market, 99.79% in equity futures, 74.71% in equity options by premium turnover and 99.48% in currency futures, according to Angel One.
Its business also extends beyond trading. The exchange operates across equity cash, derivatives, currencies, commodities and debt markets, while its ecosystem includes clearing, indices, market data and analytics and international exchange operations.
Religare also points to NSE’s vertically integrated model covering trading, clearing, settlement, listing, market data and index services.
The biggest concern for investors is that NSE’s financial performance moderated in FY26.
Revenue from operations stood at Rs 16,601.31 crore in FY26, down from Rs 17,140.68 crore in FY25. Profit after tax fell to Rs 10,302.06 crore from Rs 12,187.69 crore.
Operating EBITDA declined to Rs 11,097.90 crore from Rs 12,646.88 crore, while the EBITDA margin fell to 66.85% from 73.78%.
Angel One attributes the decline partly to regulatory measures in derivatives and higher securities transaction tax (STT), which affected equity options activity. It noted that equity options notional average daily traded volume declined from Rs 312.84 trillion to Rs 258.28 trillion.
There is, however, some recovery visible in the latest quarter.
In Q1FY27, revenue from operations increased 13.10% year-on-year to Rs 4,560.41 crore. Operating EBITDA rose 14.84% to Rs 3,594.25 crore, while profit after tax increased 6.71% to Rs 3,120.08 crore.
This is where the picture becomes more nuanced.
Angel One has recommended subscribing to the IPO. Its report points to NSE’s dominant market position, significantly higher revenue and profitability compared with BSE, strong market share in equity derivatives and the long-term growth potential of India’s capital markets.
It also highlights valuation. At the upper price band of Rs 1,785, Angel One calculates NSE’s post-issue P/E at 35.4 times, compared with 54.2 times for BSE.
Religare Broking, however, has assigned a Neutral rating.
Its report puts NSE’s valuation at a P/E of 42.9 times and says the valuation reflects the company’s established market position and future growth potential, but leaves “limited room for earnings disappointments”.
Religare’s concern is that NSE’s earnings remain closely linked to trading activity, particularly options.
The brokerage says regulatory developments, including measures affecting options trading, remain important factors for transaction-based income. It also flags regulatory uncertainty, changes in trading activity and the possibility of technology or cybersecurity disruptions as risks.
The research reports point to two different considerations investors will need to weigh.
“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,” said a report from Angel One.
“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 added.
The bullish case rests on NSE’s dominant market position, scale, strong profitability, large and expanding investor base and the structural growth of India’s capital markets. Angel One also sees the IPO valuation as favourable relative to BSE.
The cautious case centres on valuation and NSE’s dependence on trading activity. Nearly 79% of NSE’s FY26 operating revenue came from transaction charges, with options being a particularly important contributor. This leaves earnings sensitive to regulatory changes, trading volumes and changes in investor behaviour.
Religare therefore sees a balance between the company’s long-term growth opportunity and near-term regulatory and valuation risks, leading it to assign a Neutral rating.
The GMP adds another layer to the picture. At Rs 125, it currently indicates an estimated listing price of Rs 1,910, implying a 7% premium over the upper issue price. But the GMP has fallen sharply from Rs 218 on September 11, suggesting that the grey-market premium has cooled considerably ahead of the subscription opening.
For investors, therefore, the NSE IPO is a story of strong market dominance and long-term capital-market growth on one side, against valuation, regulatory and derivatives-related risks on the other.
The IPO opens today and closes on September 21. Investors will have to weigh those factors against their own risk appetite and investment horizon rather than treating the current GMP as a guaranteed indication of listing gains.
(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.)