The National Stock Exchange (NSE) has filed its listing papers with market regulator Sebi on June 17, targeting a listing before January 30 next year with an estimated issue size of ₹30,000 crore. The IPO is based on NSE's unlisted valuation of ₹5 lakh crore, while BSE's market capitalisation currently stands at ₹1.58 lakh crore. NSE shares will list exclusively on BSE, as per Indian securities law regulations that prevent exchanges from listing on their own platforms. This development marks the end of BSE's decade-long monopoly as India's only listed equity exchange, creating a significant shift in how investors access India's capital markets infrastructure.
The IPO presents an unusual valuation scenario where NSE may list at a discount to its smaller rival BSE, despite commanding dominant market positions. NSE trades at 38x to 43x FY26 price-to-earnings ratio on IPO price band assumptions of ₹1,600 to ₹1,800 per share, compared to BSE trading at 69x FY26 earnings. This discount is attributed to regulatory impacts on derivatives, particularly Sebi's tightening of the futures and options segment that has affected both exchanges. However, Pankaj Murarka from Renaissance Investment Managers argues that exchanges typically command rich valuations due to oligopolistic structure and high entry barriers, with NSE likely to command a premium given its dominant market share.
NSE maintains its commanding position across all exchange segments, holding 88% of cash-market turnover, 91% of equity futures and options, and 89% of interest-rate futures. In currency derivatives, its share reaches 74% in futures and effectively 100% in options. Globally, NSE ranks first in equity derivatives contracts traded with a 51% share and third in cash-equity trades. However, the exchange disclosed a rare decline in FY26, with total operational revenue falling 3% year-on-year to ₹16,601 crore from ₹17,141 crore in FY25, while profit declined 16% to ₹10,302 crore from ₹12,188 crore in FY25. The decline was attributed to lower transaction charges, softer trading activity, and regulatory impacts on derivatives segments.
India Inc has achieved a historic milestone with the 500 most valuable non-state-run companies collectively reaching $3.4 trillion in value, according to the latest Burgundy Private Hurun India 500 report. This figure now matches the scale of major global economies, surpassing the GDP of Canada and roughly equivalent to the combined economies of Indonesia and Spain. The report reveals that only 198 of the 500 companies increased their valuation during the year, highlighting a more selective market environment where investors are increasingly rewarding fundamentals over growth narratives. A record 95 companies entered the ranking this year, adding ₹18.45 lakh crore in value, with the threshold for entry rising to ₹10,230 crore, ensuring every company is now valued at more than $1 billion. Together, these companies employ 8.9 million people, contribute ₹3.23 lakh crore in taxes and spend ₹13,433 crore on corporate social responsibility initiatives.
The corporate elite has demonstrated remarkable resilience despite facing significant value erosion, with India's top 10 firms now valued at ₹86 lakh crore ($908 billion), down from ₹97 lakh crore a year ago but still representing nearly one-fourth of India's GDP. Reliance Industries retained its position as India's most valuable company for the fifth consecutive year with a valuation of ₹19.36 lakh crore, followed by HDFC Bank and Bharti Airtel in second and third place respectively. However, the most striking story emerges from Bharti Airtel's performance, which has created ₹7.64 lakh crore in shareholder value over the past five years, the highest among all companies, with its valuation surging 198% during this period. Bajaj Finance emerged as the highest value creator in percentage terms, with a valuation of ₹5.8 lakh crore, leading the top 10 companies in absolute value creation. Despite the decline, the top 10 companies still account for 27% of the total value of the Burgundy Private Hurun India 500 list, with the total value having risen 3.5 times over the past decade.
