The Initial Public Offering (IPO) of the National Stock Exchange of India (NSE), which is the second-largest public offering in the country, attracted 3.92 times more applications on the final trading day on Monday. The volume of this offering was 22,569 crore rupees.
This IPO is the second largest public offering in India after the Hyundai Motor India IPO in 2024, which reached 27,870 crore rupees. Although the NSE IPO exceeded the LIC offer of 21,000 crore rupees in 2022, it still falls short of the record public offering from Hyundai Motor India.
According to BSE data as of 14:35, 34.78 crore shares (34,78,26,096) were applied for the IPO against 8.86 crore shares (8,86,42,911) that were offered for sale.
Different participant categories showed varying levels of interest: Qualified Institutional Buyers (QIBs) demonstrated a subscription rate of 7.99 times, the non-institutional investor share was subscribed 5.07 times, and the retail investor quota received 1.13 times subscription.
Last Wednesday, NSE attracted 6,746 crore rupees from anchor investors, including the state insurance company Life Insurance Corporation of India (LIC), Goldman Sachs, and Fidelity. Furthermore, sovereign funds such as GIC Singapore, Abu Dhabi Investment Authority (ADIA), and Norges Bank participated in the anchor round, along with Eastspring and HSBC Global Asset Management.
The IPO includes an Offer for Sale (OFS) of up to 12.64 crore equity shares from existing shareholders. The exchange set the price band for the IPO at 1,700–1,785 rupees per share. At the upper limit, this will provide a valuation of up to 4.42 lakh crore rupees.
Since the offering is entirely an OFS, the proceeds from the sale of shares will go to the existing shareholders, not to NSE itself. NSE shares are expected to debut on the market on September 24.
This public offering marks a significant milestone for NSE, whose listing plans were suspended for almost a decade due to regulatory hurdles, including disputes related to co-location. The reduction in the size of the OFS from the initially planned 14.9 crore shares lowered the total offering volume from the initial estimate of around 30,000 crore rupees.
The National Stock Exchange of India (NSE) reported that its Initial Public Offering (IPO) attracted 'unexpectedly large' demand, significantly exceeding the number of shares available for distribution, stated Managing Director and CEO of NSE Ashishkumar Chauhan on Tuesday.
Chauhan did not disclose the ratio between Domestic Institutional Investors (DIIs) and Foreign Portfolio Investors (FPIs), noting that the allocation process is still ongoing. He also mentioned that the initially expected book size of around 9000 crore rupees was reduced to over 6000 crore rupees, despite sustained high demand.
'The demand is unexpectedly large,' emphasized Chauhan, adding that the offering interested a large number of investors wishing to acquire a limited number of shares.
The allocation will be made among various categories of institutional investors, including domestic mutual funds, other domestic institutions, and FPIs, in accordance with prevailing regulations. The NSE IPO is scheduled to begin subscription on September 17 and conclude on September 21. The price band is set at 1700–1785 rupees per share. The offering is a Follow-on Public Offer (OFS), wherein existing shareholders sell up to 12.64 crore shares; no new NSE shares are being issued.
Chauhan also noted that initially, some shareholders were reluctant to sell their stakes at the proposed valuation, which led to a reduction in the offer from the previously stated 6.2% to 5.11%. Furthermore, NSE had to approach some of its shareholders to participate in the OFS so that the exchange could meet listing requirements.
Listing the exchange will provide existing shareholders with a more transparent and liquid way to realize their assets. Currently, NSE shares trade in a private market, where shareholders may face increased transaction costs and counterparty risks, according to Chauhan.
According to the company's IPO prospectus, the shares will be listed on BSE. Regarding pricing, Chauhan clarified that the company's bankers consulted with investors both in India and abroad, including large institutions, mutual funds, pension funds, and retail investors. He explained that during discussions, it was decided to maintain the option for retail investors.
The proposed IPO comes as NSE remains India's largest stock exchange by turnover in several key segments. According to the IPO prospectus, as of June 30, 2026, NSE accounted for 93.05% of India's money market turnover and 68.48% of equity options turnover based on the premium turnover for the three months ending June 2026.
Chauhan also refuted the notion that NSE's operations heavily depend on weekly options. He stated that weekly options currently account for about 42% of NSE's total revenue, compared to 60–70% three to four years ago. The rest of the revenue comes from monthly index options, equity options, stocks, equity futures, colocation services, data, indices, and other business areas. The exchange has also expanded its activities into various asset classes, including equities, currencies, commodities, interest rates, and power.
NSE's integrated business model includes exchange listings, trading, clearing and settlement, indices, and market data. Chauhan explained part of the decrease in NSE's EBITDA margin last year due to a large one-time fine, noting that the exchange's normalized EBITDA margin remained in the range of 76–79% over the past five years.
As per the company's IPO prospectus, NSE's consolidated operating revenue grew by 9% year-on-year to 4560 crore rupees in the quarter ending June 2026, and net profit increased to 3121 crore rupees compared to 2811 crore rupees the previous year.
Chauhan stated that NSE's investor base has significantly expanded beyond major cities in the country, and the exchange will continue efforts to attract more investors and companies from regions such as Jammu and Kashmir, Northeast, Odisha, Jharkhand, and Chhattisgarh to the capital market. As of June 30, NSE had 13.237 crore unique registered investors and 26.136 crore registered investor accounts, with investors spread across over 99% of India's postal codes. 3005 organizations are registered on the exchange platform with a cumulative market capitalization of 474.08 trillion rupees.
According to sources familiar with the situation, the much-awaited Initial Public Offering (IPO) of the National Stock Exchange (NSE) is expected to be priced around ₹1700–₹1800 per share.
Sources added that the size of the Offer for Sale (OFS) may be reduced from the initially planned 6 percent to 5.25 percent, which will lead to a lower overall offering volume compared to the previously projected ₹30,000 crore.
The pricing for the exchange's IPO, which will consist solely of OFS, is expected to be announced next week, and the offering itself is likely to commence later in the same week. Shares may be listed on BSE on September 25.
In the over-the-counter market, NSE shares were trading at approximately ₹2025 per unit, according to UnlistedZone data. As of Wednesday, the premium in the grey market was about ₹228.
The exchange plans to file an updated draft prospectus early next week. Sources also noted that the expected price range reflects the reaction of institutional investors during the roadshow.
One source stated that a more attractive offer was made regarding the pricing for small investors participating in the OFS.
The exchange filed its preliminary documents with the Securities and Exchange Board of India (Sebi) in June and received regulatory approval for the Draft Red Herring Prospectus (DRHP) on September 4. Earlier this month, the Supreme Court allowed Sebi appeals regarding joint listing and dark fiber following a settlement in which NSE paid approximately ₹1,491.21 crore.
A source familiar with the developments explained the reduction in offering volume by stating that some shareholders do not wish to sell now under OFS, as they believe they can achieve a higher price after listing.
Significant information has emerged regarding the Initial Public Offering (IPO) of the National Stock Exchange (NSE). According to sources, this IPO is expected to raise approximately 30,000 crore rupees and may commence on September 18th, with the stock listing scheduled for September 25th.
If the offering size reaches approximately 30,000 crore rupees, it could become the largest IPO in Indian history. However, official confirmation of these dates from the NSE has not yet been received, and the full IPO schedule has not been announced.
Sources suggest that the IPO price band might be announced on September 15th. Following this, the book-building process for anchor investors is expected to open on September 17th. Subsequently, the public subscription may open from September 18th to September 22nd, allowing investors to apply on September 18th, 21st, and 22nd.
The projected size of the NSE IPO is around 30,000 crore rupees. If this size is maintained, it will surpass the Hyundai Motor India IPO held in 2024, which raised 27,870 crore rupees, potentially making it the largest IPO in India. Due to this large volume, increased interest is anticipated from both domestic and foreign investors.
It is expected that the NSE IPO will be structured entirely as an Offer For Sale (OFS). This means the company itself will not issue new shares; instead, existing shareholders will sell a portion of their stake. Under the OFS, approximately 14.89 million equity shares with a face value of 1 rupee may be offered, constituting about 6% of NSE's paid-up capital.
Since the IPO will be conducted entirely through the OFS mechanism, no new shares will be issued, and the IPO proceeds will not go directly to the NSE. These funds will be received by the existing shareholders selling their stake. Reports also indicate that Bank of Baroda may sell its stake in the NSE IPO. The bank is expected to sell about 7.69 million NSE shares it holds under the OFS. According to reports, Bank of Baroda might realize about 35% of its stake in NSE, although the final number of shares and the stake will only be confirmed by official documents.
Considering the current probable timeline, the following dates may be significant for investors: September 15th—possible announcement of the price band; September 17th—possible opening of the book for anchor investors; September 18th, 21st, and 22nd—possible subscription dates; and September 25th—possible stock listing.
Nevertheless, investors should remember that all these dates are tentative. Final timelines will only become clear after the official schedule is published by the NSE. A clearer picture of the offer valuation, share volume, and the actual situation for investors can be seen after the price band and related IPO documents are released.
