The National Stock Exchange (NSE) of India is drawing significant investor attention, with its unlisted shares soaring and an Initial Public Offering (IPO) on the horizon. If current valuations hold, this IPO could be the largest in Indian history.
NSE’s Anticipated IPO: A Record Breaker?
The NSE’s unlisted shares have jumped nearly 60% in the last 15 days, reaching ₹2,400 per share. This surge values the exchange at an impressive ₹5.88 lakh crore. Should NSE decide to dilute just 10% of its equity in an IPO at this valuation, it stands to raise an estimated ₹55,000-60,000 crore.
This figure would shatter previous Indian IPO records, including the ₹21,000 crore raised by Life Insurance Corporation of India (LIC) in 2022 and the recent ₹27,870.16 crore planned by Hyundai Motor India. Market experts are calling it the “mother of all primary offerings.”
Why the Buzz Around NSE?
Several factors are fueling investor excitement for NSE:
- Strong Financial Performance: NSE reported a consolidated net profit of ₹12,188 crore for FY25, a 47% year-on-year increase, with total income at ₹19,177 crore.
- Dominant Market Position: NSE is the world’s largest derivatives exchange by contracts traded and the second largest in equities by number of trades. It holds a commanding market share across various segments in India.
- Growing Retail Investor Interest: The increasing number of retail investors in NSE’s unlisted shares underscores high demand.
- Global Standing: As the fifth-largest stock exchange globally by market capitalization, NSE is a significant player on the world stage.
- Immense Growth Potential: With relatively low capital market penetration in India, analysts see substantial room for NSE to expand further.
The Road Ahead
While there’s no official IPO date yet, the consensus among market insiders points to a potential listing by late 2025 or early 2026. This timeline hinges on the resolution of ongoing legal proceedings related to the co-location case and necessary shareholder approvals. SEBI is reportedly willing to grant its “no objection certificate” once these hurdles are cleared, with transparency regarding legal contingencies being a key requirement in NSE’s Draft Red Herring Prospectus (DRHP).