The National Stock Exchange of India (NSE) paid a total of 1.86 billion rupees (approximately $22.25 million) in fees to 20 banks for its recent $2.7 billion initial public offering. This fee amount represents about 0.65% of the total issue size. The NSE's IPO was valued at 225.7 billion rupees ($2.7 billion) and garnered significant demand, becoming the second-largest IPO in India's history. The offering saw a total demand of nearly 902 billion rupees ($10.8 billion) and was subscribed 5.7 times, with strong interest from institutional and high-net-worth investors.
The fee structure for the NSE's IPO stands at 0.65%, which is considered modest compared to the average 1.86% paid by 417 companies in 2025 and 1.67% by 350 issuers in 2024. However, it is higher than some government-linked or quasi-sovereign transactions in India, where banks sometimes accept symbolic fees for prestige. For instance, State Bank of India reportedly paid six banks 1 rupee each for a 250 billion rupee ($3 billion) fundraising in July 2026. The NSE's fee also compares favorably to the 0.58% paid by Life Insurance Corporation Ltd. in 2021 and 0.54% by NTPC Green Energy.
Six lead banks, including Kotak Mahindra Capital Co., JM Financial Ltd., Morgan Stanley, HSBC Holdings Plc, Citigroup Inc., and JPMorgan Chase & Co., were given key roles, with Kotak acting as the left lead. These lead banks are expected to share the bulk of the fee pool. While the fee rate is lower than the average for private-sector deals, it is higher than the minimal fees observed in some government-backed offerings. For example, Hyundai Motor India's record IPO in 2024 paid about 4.93 billion rupees ($59 million), or 1.77% of its issue size, in fees, and LG Electronics Inc. paid about 2.26 billion rupees ($27 million), or 1.94%, for its $1.3 billion India listing.
Analysts note that while the fee is modest, it offers banks a strategic foothold in India's capital markets, given the NSE's central role. The NSE's IPO was launched amid investor caution regarding declining derivative trading volumes, which contribute significantly to its revenue. The exchange's revenue fell 3.1% and profit dropped 15.5% in the fiscal year ending March 2026. The IPO, priced between 1,700 and 1,785 rupees per share, valued the company at $46 billion, which was 15% to 20% lower than initial valuation expectations. Despite this, its forward earnings multiple of 35 to 38 times FY2028 earnings is higher than global exchange operators like Nasdaq and CME Group, which trade between 23 to 31 times earnings.
