NSE IPO Countdown begins: The National Stock Exchange is gearing up for what could become India’s biggest IPO, with the market infrastructure institution expected to raise around Rs 27,000-31,500 crore through an offer for sale. The issue will involve 14.89 crore shares, with no fresh capital being raised for the exchange.
NSE has received regulatory approval for the long-awaited Rs 30,000-crore initial public offering, which could potentially be the country’s biggest-ever yet.
The Securities and Exchange Board of India issued an observation letter, effectively a clearance to the world’s largest derivatives exchange to proceed with the IPO, according to an update on the regulator’s website on Friday.
NSE IPO: Rs 5 lakh crore valuation in sight
The exchange is expected to list around September 25, making the IPO one of the most closely watched market events.
Who is selling shares in NSE IPO?
Since the IPO is a 100 per cent OFS, the money raised will go to existing shareholders selling their stakes rather than to NSE.
Bank of Baroda, Stock Holding Corporation, General Insurance Corporation, New India Assurance, National Insurance Company and United India Insurance Company are among the other selling shareholders. The top 10 shareholders together are shown as selling around 11.89 crore shares.
NSE’s strong FY26 performance
NSE reported revenue of around Rs 16,601 crore in FY26, marking a 19 per cent compound annual growth rate over FY22-26. EBITDA stood at Rs 11,098 crore, up at a 14 per cent CAGR, while profit after tax reached Rs 10,302 crore, growing at a 19 per cent CAGR.
The exchange reported an EBITDA margin of 67 per cent and a PAT margin of 51 per cent in FY26. Its earnings per share stood at around Rs 41.6.
NSE’s financial performance remains significantly larger than that of its rival BSE. In FY26, NSE reported revenue of around Rs 16,600 crore against BSE’s Rs 4,834 crore.
NSE’s EBITDA stood at Rs 11,098 crore, compared with Rs 3,458 crore for BSE. While BSE had a slightly higher EBITDA margin of 71 per cent, NSE’s PAT was much higher at Rs 10,300 crore versus BSE’s Rs 2,488 crore.
What could NSE shares be worth after listing?
Analyst valuation scenarios shown in the graphic put NSE’s fair value between Rs 1,600 and Rs 2,500 per share.
Under the bear case, an EPS of Rs 40 and a 40x price-to-earnings multiple imply a fair value of Rs 1,600. The base case assumes Rs 45 EPS and a 45x P/E multiple, giving a fair value of Rs 2,025.
In the bull case, Rs 50 EPS and a 50x P/E multiple point to a potential fair value of Rs 2,500.
The wide range highlights the market’s focus on how NSE’s earnings growth and valuation will translate into its eventual listing price.
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money-related decisions.)
