NSE Begins IPO Preparations, Eyes Filing By June-July

The National Stock Exchange of India (NSE) has formally initiated groundwork for its long-awaited initial public offering (IPO), bringing together all 20 appointed investment bankers earlier this week to kickstart the drafting of its offer document and sketch a preliminary listing timeline, according to a Mint report citing people familiar with the matter. The meeting marked the first time all bankers convened collectively, aligning on the broad contours of the process ahead.

"NSE met all 20 bankers together for the first time, where everyone agreed to a tentative timeline for the IPO," one person said in the report. The immediate focus will be on identifying key risks and compiling necessary disclosures, with work expected to begin shortly.

Parallel to documentation efforts, the exchange is preparing to engage retail shareholders interested in participating in the offer for sale (OFS). Outreach is expected to be completed by the end of April, another person aware of the discussions said in the report.

Retail investors had already been contacted by the registrar last month to indicate their willingness to participate. The communication clarified eligibility conditions: "The exact date of the filing of the DRHP with SEBI is currently unknown. Accordingly, only such equity shares which have been held continuously since June 15, 2025 (the cut-off date) will be eligible to be sold in the Offer for Sale," as per the report.

Once responses are gathered, bankers will take about three weeks to assess participation levels. During this period, institutional investors for the OFS portion will also be finalised, states the report.

Clarity on valuation is expected only after sellers and the size of their stake dilution are locked in, likely by the end of May. For now, discussions around pricing remain premature. "Right now, everyone agrees that it is too early to discuss valuations," a third person said in the Mint report. If this timeline holds, draft papers could be filed with the Securities and Exchange Board of India by June or early July.

Responding to queries, NSE said, “Pursuant to the NOC issued by SEBI, the board approved an initial public offering of the Company through an offer for sale on 6 February 2026. No further comments at this stage.”

The IPO represents the culmination of nearly ten years of effort. NSE had first filed for a public listing in 2016, but regulatory challenges, including the co-location controversy, derailed the plan. The issue, which involved allegations of preferential access to trading systems, led to prolonged scrutiny and a leadership reshuffle.

A breakthrough came in January 2026 when NSE settled with SEBI for Rs 1,300 crore, clearing the path to revive its IPO ambitions. However, experts caution that the listing will face heightened regulatory and legal scrutiny.

"There have been investigations and governance issues in the past that were examined by SEBI, and this necessitates an unusually rigorous disclosure, diligence, and risk-allocation framework in the offer document," said Tushar Kumar, a Delhi High Court advocate.

"With NSE, the objective is not merely successful capital raising but the creation of a defensible, litigation-resilient, and regulatorily robust transaction structure, ensuring that the eventual listing proceeds with unimpeachable legal integrity and institutional confidence,” he added.

The offering is expected to involve a 4–4.5 per cent stake sale, potentially valuing the issue between $1.5 billion and $2.5 billion (around Rs 23,000 crore), based on current unlisted market prices.

NSE’s listing is set to headline a strong IPO pipeline in 2026, alongside anticipated offerings from Jio Platforms, SBI Funds Management, and Flipkart. This follows a robust 2025, when 371 companies collectively raised over Rs 1.75 trillion, underscoring sustained investor appetite in India’s primary markets.