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The National Stock Exchange (NSE) has filed draft papers with the Securities and Exchange Board of India (SEBI) for its long-awaited initial public offering, which is estimated to raise around INR 30,000 crore through an offer for sale by existing shareholders. The proposed issue, involving the sale of 14.89 crore shares, is expected to become the largest IPO in Indian capital market history, surpassing Hyundai Motor India’s INR 27,870 crore offering. The filing marks a significant step towards the listing of India’s largest stock exchange after nearly a decade of regulatory delays linked to governance concerns and the co-location matter. Major shareholders including State Bank of India, Canada Pension Plan Investment Board and several public-sector insurers will dilute holdings, while Life Insurance Corporation of India will retain its stake.
The National Stock Exchange (NSE) has filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for an initial public offering estimated at around INR 30,000 crore, reviving a listing plan that had remained stalled for nearly a decade due to regulatory and governance-related issues.
The proposed public issue will comprise an offer for sale (OFS) of 14.89 crore equity shares by existing shareholders, representing nearly 6 per cent of the exchange’s equity base. No fresh shares will be issued under the IPO, with proceeds from the sale accruing entirely to the selling shareholders.
According to the draft filing, State Bank of India will be the largest seller in the issue, proposing to offload up to 2.48 crore shares. Other major shareholders planning partial exits include MS Strategic (Mauritius) Limited, which will sell 1.60 crore shares, Canada Pension Plan Investment Board with 1.19 crore shares, Aranda Investments (Mauritius) Pte Ltd with 1.12 crore shares and Bank of Baroda with 1.10 crore shares.
Additional selling shareholders include Stock Holding Corporation of India Ltd, General Insurance Corporation of India, The New India Assurance Company, National Insurance Company and United India Insurance Company. Meanwhile, Life Insurance Corporation of India (LIC), which remains the exchange’s largest shareholder with a 10.72 per cent stake, will not participate in the share sale.
People familiar with the matter estimate that the IPO could be valued at approximately INR 30,000 crore, implying a market capitalisation of more than INR 5 lakh crore for the exchange. If completed at the expected size, the offering would surpass Hyundai Motor India’s INR 27,870 crore IPO launched in 2024 and become the largest public issue in the history of the Indian stock market.
The filing follows approval from NSE’s board in February after the exchange received a no-objection certificate from SEBI. NSE had originally submitted draft IPO documents in 2016 with plans to raise around INR 10,000 crore through an offer for sale. However, regulatory approval was withheld following concerns related to governance issues and the exchange’s co-location controversy.
Over the intervening years, NSE made multiple representations to the regulator and implemented various compliance and governance measures to address regulatory concerns. As part of its preparations for the public issue, the exchange appointed 20 merchant bankers, legal advisers and other intermediaries to manage the transaction.
A major hurdle was removed earlier this year when SEBI granted in-principle approval to NSE’s settlement application in the unfair market access case linked to the co-location matter. The exchange had submitted the settlement application in 2025 and subsequently proposed a payment of INR 1,388 crore to resolve the issue and advance its listing plans.
Financially, NSE reported a profit after tax of INR 10,302 crore for FY26, compared with INR 12,188 crore in FY25, reflecting a decline of 15 per cent. Total income stood at INR 18,713 crore during the year, slightly lower than INR 19,177 crore in the previous fiscal.
For the quarter ended March 2026, the exchange reported an 8 per cent increase in profit after tax to INR 2,871 crore from INR 2,650 crore a year earlier. Total income for the quarter rose 22 per cent to INR 5,360 crore from INR 4,397 crore in the corresponding period of the previous year.
With the filing of the DRHP, NSE has moved a significant step closer to achieving its long-pending objective of becoming a publicly listed company, a development closely watched by investors, market participants and the broader financial sector.
Source - PTI
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