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14 Jun, 2025
The unlisted shares of the National Stock Exchange (NSE) surged to a historic high of ₹2,100 on Monday, reflecting mounting investor enthusiasm ahead of the long-awaited initial public offering (IPO) of India’s largest stock exchange. This rally has propelled NSE’s estimated market capitalization to approximately ₹5.2 lakh crore.
Krishna Patwari, Founder and Managing Director of Wealth Wisdom India, attributed the surge in unlisted share prices to robust investor demand and optimism about potential post-listing gains. “The rise in NSE's unlisted share price reflects strong investor demand ahead of the IPO, with expectations of significant returns post-listing,” Patwari said.
The anticipation is also visible in grey markets, where activity has intensified amid signs that regulatory hurdles are being resolved. The IPO, which has faced delays for several years, now appears to be moving closer to fruition.
At a recent event, SEBI chairperson Tuhin Kanta Pandey confirmed that most regulatory issues delaying the IPO are being addressed. "All the outstanding issues will be resolved and we will move forward. I can't give you the timeline, but it will be done soon. NSE and Sebi are talking. They are resolving the issues," Pandey stated.
NSE’s operational achievements have also bolstered investor confidence. In 2024, the exchange facilitated a record 268 IPOs, including 90 mainboard and 178 SME offerings, raising a total of ₹1.67 lakh crore. This marks the highest number of IPOs in a single calendar year, underscoring the growing vibrancy of India’s capital markets.
On the financial front, NSE reported a consolidated net profit of ₹2,650.11 crore for the quarter ended March 31, 2025 (Q4 FY25), up 7% year-on-year. However, revenue from operations declined 18% year-on-year to ₹3,771 crore, compared to ₹4,625 crore in the same quarter last year. The exchange also announced a ₹35 per share dividend for FY25.
Despite the optimism, experts caution that investing in unlisted shares carries notable risks. These include limited liquidity, valuation ambiguity, and reduced transparency. Additionally, any delays or changes in the IPO process could impact investment returns and timelines. Unlisted shares lack a standardized pricing mechanism, and trading volumes can be low, making it difficult for investors to exit their positions quickly.
The surge in NSE’s unlisted share price—up nearly 140% over four years from ₹740 in 2021 to ₹1,775 in May 2025—reflects a broader shift in investment preferences. Retail investors, family offices, and young professionals are increasingly participating in the unlisted space, which was once dominated by industry insiders and private equity players.
NSE’s dominance in India’s capital markets, operational efficiency, and consistent financial performance continue to make it an attractive bet for investors, even as they await the final regulatory nod for its landmark IPO.
The record-breaking rally in NSE’s unlisted shares underscores the high expectations surrounding its upcoming IPO and the growing confidence in India’s capital markets. While the exchange’s strong fundamentals and regulatory progress have fueled investor optimism, those considering unlisted shares should remain mindful of the inherent risks and potential volatility. As the IPO process advances, all eyes are now on the final regulatory clearances that will pave the way for one of India’s most anticipated market debuts.
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