NSE IPO coming soon: National Stock Exchange of India (NSE) is inching closer to its much awaited IPO if one goes by the recent cues and issue is said to be launched in H1FY27.
NSE IPO coming soon: National Stock Exchange of India (NSE) is inching closer to its much awaited IPO if one goes by the recent cues. India's capital markets regulator Sebi has in-principal approved NSE's application in the long-running unfair market access case, clearing a key regulatory hurdle for its long-awaited listing.
In another development, the Government has approved a cut to the minimum proportion of shares large companies looking to list must sell to 2.5 per cent of their share capital from 5 per cent, said the markets regulator's chairman Tuhin Kanta Pandey. This has added to a renewed buzz in unlisted shares of NSE.
According to the dealers of the pre-IPO market, the recent optimism over NSE IPO has pushed the price of unlisted shares higher. The stock has risen nearly 10 per cent to Rs 2,000-2,050 levels from Rs 1,850 mark a few days ago. At the current valuations in the pre-IPO market, NSE is commanding a market capitalization of more than Rs 5 lakh crore.
Sandip Ginodia, CEO of Altius Investech believes that the IPO price shall be around current valuations only considering the revised 2.5 per cent stake dilution norms for the companies valued more than Rs 5 lakh crore. In that case, NSE will raise roughly around Rs 12,000-13,000 crore via IPO. He also expects NSE's IPO to hit the streets in the first half of 2026 with issue price around Rs 2,000.
"NSE's share will gain momentum in the run-up to the IPO and the momentum is likely to sustain for the initial few months post listing considering the limited free-float of the shares. However, one needs to wait for the actions once the pre-IPO lock-in expires and how institutional investors manage their stake in the leading exchange," Ginodia adds.
NSE is said to be most widely owned unlisted company, having more than 1 lakh shareholders. One should note the pre-IPO shares come with a 6-month since listing. Also, unlisted share markets offer limited liquidity and price discovery mechanisms are opaque in nature. However, investors who want a definite opportunity in NSE are buying its share from the pre-IPO market.
NSE consistently commands more than 90 per cent market share in cash equities and a dominant position in derivatives, making it a market leader with high profitability, said InCred Money. From a financial standpoint, NSE has demonstrated strong and stable profitability, with operating margins of about 75 per cent and a debt-free balance sheet, it said.
"NSE has publicly indicated that it is working towards a potential listing, subject to regulatory approvals. NSE’s growing engagement around its unlisted shares has reignited investor interest, especially after a prolonged period of uncertainty around its IPO timeline. While the listing path remains unclear, renewed activity has brought NSE shares back into focus," InCred added.
Pandey has been advocating for a no-objection certificate (NOC) for NSE's IPO within this month, while NSE's MD and CEO Ashish Kumar Chauhan hinted that listing is still 6-8 months away. One should note that NOC will allow NSE to formally initiate listing steps including filing draft papers.
Hitesh Dharawat, Co-founder of Mumbai-based boutique firm Dharawat Securities said that NSE appears to be expensive above Rs 2,000-levels and IPO is quite delayed. He sees around Rs 1,500-1,800 range, leaving some value for investors but remains positive on it on a long-term basis.
If Dharawat's expectations are to be believed then NSE is valued around Rs 3.75 lakh-Rs 4.5 lakh crore and would be required to offload at least 5 per cent stake in the IPO, hinting at an issue size around Rs 18,750-22,500 crore. NSE has an outstanding share capital of 24.75 crore equity shares.
