The National Stock Exchange's (NSE) ₹30,000 crore IPO is set to deliver a $2.6 billion windfall to top investors as the country's largest bourse moves ahead with its long-awaited listing. According to The Hindu BusinessLine, the exchange may offer shares at a 5% to 10% discount to private market valuations, with the valuation under discussion around ₹1,900 per share. At this pricing, the IPO would be worth $3.3 billion, making it one of India's two largest public offerings alongside Mukesh Ambani's Reliance Jio. The top 10 investors offering shares are set for a windfall worth some $2.6 billion, with State Bank of India locking in gains of about ₹5,000 crore from the sale of 2.48 crore shares at a weighted average cost of ₹0.80 per share. The listing will be a pure offer-for-sale with existing shareholders offering to sell about 6% of the exchange's equity and no fresh equity raised.
The National Stock Exchange's (NSE) ₹30,000 crore IPO is set to be India's biggest ever, with the company officially filing its Draft Red Herring Prospectus on June 17, 2026. The IPO will comprise up to 148.9 million equity shares, or nearly 6% of paid-up capital of NSE, with no fresh issue component. This arrangement mirrors existing market structures, with BSE listed on NSE while NSE would be required to list on BSE due to Sebi regulations not permitting stock exchanges to list on their own platforms. The listing of India's largest stock exchange is expected to create a significant liquidity pool on BSE's platform, potentially boosting cash-market trading volumes significantly. The listing is expected in the October-November 2026 festive window, with NSE required to list on BSE as a company cannot list on its own exchange platform. The exchange has more than 200,000 investors currently, and its shares trade at close to ₹2,000 ($21.18) in the unlisted market, suggesting a valuation of some $57 billion, setting the bourse up to become the world's fifth most valuable after London Stock Exchange Group.
NSE maintains its position as India's dominant stock exchange, controlling 95% market share in cash markets and 75% in equity derivatives markets as of June 17, 2026. The exchange serves 12.9 crore unique investors across 99% of India's postal codes and hosts 2,200+ listed companies. However, recent financial results present a sobering reality for investors as the exchange faces regulatory headwinds. In FY26, NSE reported total revenue of ₹18,700 crore with an operating EBITDA margin of 66.85% and profit after tax margin of 50.98%. However, net profit fell 16% year-on-year to ₹10,302 crore in FY26 from ₹12,188 crore the previous year, with operating margin declining to 67% from 74% a year ago. The decline was partially offset by a net exceptional gain of ₹1,075 crore from selling a 9% stake in NSDL, but settlement charges to Sebi more than doubled to ₹1,432 crore from ₹670 crore, driven by a ₹1,391-crore provision for co-location and dark fibre cases settlement. According to Zerodha's Daily Brief, revenue from operations declined from about ₹17,100 crore in FY25 to ₹16,600 crore in FY26, while profit fell from approximately ₹12,200 crore to ₹10,000 crore.
The seller list reveals exceptional returns for early institutional investors, with Stock Holding Corporation of India expected to sell about 1.08 crore shares and could see a return of about ₹2,300 crore based on its acquisition cost of ₹0.46 per share. Bank of Baroda acquired NSE shares at ₹0.54 apiece and is offering 1.09 crore shares for sale, translating into potential proceeds of ₹2,300 crore. General Insurance Corporation of India, New India Assurance Company, National Insurance Company and United India Insurance Company could see returns of up to ₹2,300 crore depending on their respective acquisition costs. MS Strategic (Mauritius), an associate of Morgan Stanley, holds shares acquired at ₹66.54 per share, pegging its gain at around ₹3,000 crore in the stake sale. Canada Pension Plan Investment Board has a weighted acquisition cost of ₹324.13 per share, while Aranda Investments (Mauritius), an arm of Singapore's Temasek, holds shares at ₹62.38 per share. LIC, the single largest shareholder (~10.7%), is reportedly NOT selling in this round and isn't in the selling-shareholder list, though it will retain its entire stake and could see sharp revaluation of its holding.
According to Zerodha's Nithin Kamath, NSE's high cash generation and dividend payouts highlight a rarity in India's corporate sector. The exchange earned more than ₹10,300 crore in FY26 and distributed roughly ₹8,660 crore in dividends, achieving a payout ratio of 84%. As Kamath noted, "This (the dividend payouts) will likely continue even after listing because NSE can't do much with the excess profits. SEBI doesn't allow exchanges to invest in other businesses, listed or private." The tax disadvantage of dividend distribution creates a powerful incentive for companies to retain earnings rather than distribute them to shareholders. Kamath explained that "A differential of 14.5% vs 51% creates a strong incentive for profitable companies to reinvest aggressively rather than distribute." He acknowledged that while reinvestment is good for the economy in the short run, businesses that are not profitable are more vulnerable to economic cycles. The issue is part of a global debate on double taxation of corporate profits, with countries like the US taxing dividends from listed companies at lower rates through qualified dividends, and Australia providing investors credit for tax already paid by companies.
