The National Stock Exchange of India (NSE) has filed its Draft Red Herring Prospectus (DRHP) with the capital markets regulator Sebi, initiating a long-awaited initial public offering (IPO). This move positions the NSE for one of India's largest IPOs this year, following a previous attempt in 2016 that was delayed. The IPO is estimated to be around $3 billion to $3.6 billion (approximately Rs 30,000 crore) and is structured entirely as an offer-for-sale (OFS) of up to 14.89 crore shares. This means the exchange itself will not raise fresh capital; instead, proceeds will go to existing shareholders who are divesting about 6% of their holdings.
The listing process for the NSE has been stalled for nearly a decade due to regulatory hurdles, including the co-location controversy. Earlier in the year, Sebi issued a formal no-objection certificate, removing a major regulatory obstacle. The NSE had previously filed for a Rs 10,000 crore IPO in December 2016, which was put on hold. In connection with the co-location case, where certain brokers were accused of preferential access, the exchange submitted a settlement application in June 2025 and offered to pay Rs 1,388 crore to resolve the matter.
Several key existing investors are participating in the offer-for-sale. Among the major sellers are Tiger Global, proposing to sell 1.48 crore shares, accounting for over 13% of the total offer size. SBI plans to sell 64.28 lakh shares, and SBI Capital Markets will offload 53.62 lakh shares. Other participating shareholders include IDBI Bank (74.15 lakh shares), IFCI (34.31 lakh shares), Aranda Investments (Mauritius), SAIF II-SE Investments, HDFC Standard Life, Bajaj Holdings & Investment, and Bank of Baroda. Interestingly, Life Insurance Corporation of India (LIC), the single largest shareholder with a 10.72% stake, will not be offloading any shares. The IPO could surpass Hyundai Motor India's Rs 27,870 crore issue from October 2024 to become India's biggest public issue.
NSE shares currently trade in the unlisted market at approximately Rs 1,950-2,050 per share, implying a valuation of roughly Rs 5 lakh crore, which would make it one of India's most valuable listed financial institutions after the public issue. The exchange is considered a capital-light, near-monopoly and commands rich valuations in the unlisted market, trading near 45 times FY26 earnings. The settlement of the co-location dispute has been a key factor in removing an overhang on the listing, although the exchange's earnings remain tied to volatile derivatives trading volumes.
