The National Stock Exchange of India (NSE) has filed its Draft Red Herring Prospectus (DRHP) with SEBI, formally initiating a long-delayed initial public offering (IPO) expected to be one of the largest in India's history. The IPO is structured entirely as an offer-for-sale (OFS) of up to 148.9 million shares, meaning the exchange itself will not raise new capital, and proceeds will go to existing shareholders. The issue size is estimated to be around $3 billion to $3.6 billion, with some reports suggesting it could target up to $3.6 billion (₹30,000 crore).
The IPO valuation is anticipated to be upwards of ₹5 lakh crore, translating to approximately $60 billion. Among the key shareholders looking to sell stakes are institutional investors like SBI, which plans to offload 6.428 million shares, and IDBI Bank, which will sell 7.415 million shares. Other major participants in the OFS include Tiger Global, Aranda Investments (Mauritius), SAIF II-SE Investments, Canada Pension Plan Investment Board, Bank of Baroda, New India Assurance Company, and United India Insurance. Notably, Life Insurance Corporation of India (LIC), the single largest shareholder with a 10.72% stake, will not be selling any shares.
This marks a re-attempt at listing after a 2016 IPO proposal, valued at ₹10,000 crore, was stalled due to the co-location controversy, where allegations surfaced in 2015 of preferential access being provided to certain algorithmic traders. Regulatory investigations and legal issues, including the co-location case, had previously delayed the listing for nearly a decade. In 2025, the NSE offered to pay ₹1,388 crore to settle the matter.
NSE has played a pivotal role in transforming India's capital markets, demonstrated by a compounded annual growth rate of 26.9% in its unique registered investor base, which grew from 30.87 million on March 31, 2020, to 129.1 million by March 31, 2026. In fiscal year 2026, the platform facilitated the mobilization of ₹20.3 trillion in funds. The company's operations are supported by proprietary, resilient, and secure technology infrastructure that enables high-speed transactions, comprehensive market data dissemination, and rapid implementation of regulatory directives.
With 20 merchant bankers hired for the IPO, a record for an Indian public issue, and eight law firms advising on regulatory and compliance aspects, the exchange is aiming to list between Navratri and Diwali. The proposed IPO, which will involve selling a 4-5% stake, is poised to surpass Hyundai Motor India's $3.34 billion (₹27,870 crore) issue from October 2024, potentially becoming India's biggest listing ever.
