Author: Aadarsh Patel | EQMint
The long-awaited National Stock Exchange of India (NSE) IPO opened for subscription on Thursday, September 17, putting the country’s largest stock exchange in the public markets after years of regulatory and legal delays.
The ₹22,569 crore issue, worth about $2.3 billion, has drawn significant attention from investors as they assess NSE’s valuation, its dependence on derivatives trading and the outlook for India’s rapidly expanding capital markets.
The IPO is an Offer for Sale (OFS), meaning NSE will not receive the proceeds from the shares being sold. Instead, existing shareholders are offering part of their holdings to investors.
NSE IPO Price Band and Issue Details
The NSE IPO has a price band of ₹1,700 to ₹1,785 per share and will remain open until September 21.
At the upper end of the price band, the exchange is valued at roughly $46 billion, according to Reuters. That valuation is significantly below levels discussed in private-market transactions and during earlier preparations for the listing.
The lower valuation is one of the key factors investors are examining as they decide whether the issue adequately reflects NSE’s earnings potential and market position.
Anchor Investors Commit $703 Million
Before the IPO opened to the public, NSE raised approximately ₹6,746 crore ($703 million) from anchor investors.
The anchor allocation included major global and domestic institutions, with LIC emerging as the largest anchor investor. Other participants included Norway’s Government Pension Fund, the Abu Dhabi Investment Authority and Fidelity.
The shares were allocated at the upper end of the IPO price band at ₹1,785 apiece.
The strong institutional participation comes despite concerns about the outlook for derivatives trading, which has historically been a major contributor to NSE’s revenue.
Why NSE’s Valuation Is Under Scrutiny
A major issue surrounding the IPO is NSE’s reliance on the derivatives market.
Options trading volumes have declined from their 2024 peak following regulatory changes, while measures introduced to curb excessive derivatives activity have changed the economics of the segment.
Reuters reported that derivatives volumes have fallen 27% from their 2024 peak, while derivatives remain a major source of NSE’s income.
This has made the exchange’s future earnings trajectory an important consideration for investors.
NSE’s FY2026 revenue declined 3.1%, while profit fell 15.5%, according to Reuters.
IPO Sees Early Subscription
The public issue received bids for around 9% of the shares on offer early on the first day, according to exchange data cited by Reuters.
The initial response comes as India’s IPO market remains active, with several large companies preparing to access the public markets.
NSE’s offering is also being closely watched ahead of the expected IPO of Jio Platforms, which could become another major listing for India’s equity markets.
NSE’s Growth Beyond Derivatives
While derivatives remain central to NSE’s business, the exchange has been expanding into other areas.
Its businesses include equity trading, market data, technology services and international operations. NSE has also expanded its presence at GIFT City, including through GIFT Nifty, which provides an offshore trading avenue for Indian equity index derivatives.
The exchange has also introduced newer financial products, including electricity futures and a coal exchange, as it looks to broaden its revenue base.
One of India’s Biggest IPOs
The NSE offering is among India’s largest IPOs and represents a major milestone for the country’s financial markets.
The exchange has been preparing for a public listing for years, but regulatory and legal issues repeatedly delayed the process. Its eventual IPO comes as India’s primary market continues to attract large domestic and international capital.
With the subscription window now open, investors will be watching the final demand across institutional, retail and other categories, while the market assesses whether NSE’s valuation appropriately reflects both its dominant position and the changing dynamics of India’s derivatives market.
The IPO will remain open until September 21, 2026, with NSE expected to move toward its stock-market debut after the completion of the issue process.
For more such information, visit EQMint
Join our WhatsApp channel for timely updates: Whatsapp
