The National Stock Exchange of India (NSE), the country's largest stock exchange and a major global derivatives market, has filed its Draft Red Herring Prospectus (DRHP) with SEBI, formally initiating its initial public offering (IPO). This long-awaited listing, first attempted in 2016, is anticipated to be one of India's biggest public issues this year, with an estimated size of $2 billion to $3.6 billion (₹30,000 crore). The IPO is structured entirely as an Offer for Sale (OFS) of up to 14.89 crore shares, meaning existing shareholders will sell their stakes and NSE will not raise fresh capital. The valuation could reach over ₹5.14 trillion, making it more than three times the size of its rival BSE. The filing follows the NSE's board approval in February and SEBI's granting of an in-principle approval for the exchange's settlement application in the co-location case, a key hurdle that had delayed the IPO.
Several major institutional and corporate investors are planning to sell shares in the IPO. State Bank of India (SBI) is a prominent seller, planning to offload up to 2.48 crore shares, while other key domestic institutions include IDBI Bank, SBI Capital Markets, IFCI, HDFC Standard Life, Bajaj Holdings & Investment, Bank of Baroda, Stock Holding Corporation of India (SHCIL), Indian Bank, The New India Assurance Co. Ltd, The Oriental Insurance Co., General Insurance Corp. of India (GIC), and National Insurance Co. Ltd. Among international investors, Tiger Global is expected to be a major seller, proposing to sell 1.48 crore shares, accounting for over 13% of the total offer. Other investors include Aranda Investments (Mauritius) and SAIF II-SE Investments, MS Strategic (Mauritius) Limited (1.60 crore shares), and Canada Pension Plan Investment Board (1.9 crore shares).
Life Insurance Corporation of India (LIC), the single largest shareholder in NSE, may hold on to its stake, even as other public sector insurers participation in the OFS. The proposed share sale involves existing shareholders collectively divesting approximately 6% of the exchange's stake. The initial IPO attempt in 2016 for approximately ₹10,000 crore was stalled due to regulatory investigations into a co-location controversy, where certain algorithmic traders allegedly received preferential access. NSE had filed a settlement application in June 2025 and offered to pay ₹1,388 crore to resolve the matter and proceed with its listing plans, with SEBI granting a no-objection certificate in January 2026. This IPO is expected to surpass Hyundai Motor India's ₹27,870 crore issue from October 2024 to become India's largest-ever public issue.
