The National Stock Exchange of India (NSE) has filed draft papers with the Securities and Exchange Board of India (Sebi) for its highly anticipated initial public offering (IPO), marking a significant step towards its listing on the Bombay Stock Exchange (BSE). The offer, valued at ₹27,000 crore, will consist entirely of an offer for sale (OFS) by existing shareholders.
The IPO will see up to 148.9 million shares, representing nearly 6% of NSE's paid-up capital, being offered to the public. Major stakeholders such as State Bank of India, MS Strategic (Mauritius), and Canada Pension Plan Investment Board are among those reducing their holdings. However, Life Insurance Corporation of India, one of the largest shareholders, will not participate in the OFS.
The distribution of shares in the IPO will allocate up to 50% to qualified institutional buyers, at least 15% to non-institutional bidders, and 35% to retail investors, as per the draft red herring prospectus (DRHP). In the unlisted market, NSE is currently valued at around ₹5 lakh crore, with shares closing at ₹2,045 apiece recently.
The IPO journey has been long, with the first application submitted to Sebi on October 18, 2016. Delays were primarily due to regulatory concerns over a co-location case and governance issues. In June 2025, NSE proposed a settlement of over ₹1,388 crore to resolve these issues, which was recently accepted by a Sebi expert panel.
A consortium of approximately 20 investment banks, including Kotak Mahindra Capital Company and JM Financial, will act as book-running lead managers for the issue. This move is expected to enhance transparency and governance at NSE, aligning with global standards.
Background
The NSE's IPO has been one of the most awaited in India, with its first application submitted in 2016. Regulatory hurdles, including a co-location case, delayed the process. The successful listing is expected to set a benchmark for transparency and governance in the Indian financial markets.
As NSE moves closer to its IPO, market participants will be keenly watching for Sebi's final approval and the subsequent listing process. The successful execution of this IPO could set a precedent for future listings of major financial institutions in India.
