He also said the government approved a 2.5% stake dilution in the exchange and that a notification to this effect will be issued soon. The development is seen as the strongest signal yet that the country’s largest stock exchange may finally be moving closer to an IPO. Earlier, Pandey had said that a no-objection certificate (NOC) for the public offer would be issued later this month.
Reuters had earlier reported that NSE was planning to file its draft listing papers by the end of March. The exchange is understood to be in discussions with investment bankers and law firms to finalise the prospectus and assess investor appetite for what could turn out to be one of India’s biggest-ever IPOs. Formal appointments of advisers are expected after Sebi issues the NOC.
NSE, the world’s largest derivatives exchange by volume, has been attempting to go public since 2016. Its listing plans were repeatedly delayed due to regulatory investigations into fair market access through its co-location facilities, as well as broader governance concerns.
The matter is still pending before the Supreme Court. Last year, the exchange offered to settle the case by paying Rs 1,387 crore, a proposal that Sebi has been evaluating.
The regulatory backdrop has also turned more favourable. In 2024, Sebi reduced the minimum public float requirement for very large companies, allowing entities valued above Rs 5 lakh crore post-listing to dilute just 2.5% of equity, compared with the earlier 5%.
This change aimed to ease the listing path for large issuers, including infrastructure-heavy platforms such as exchanges.NSE unlisted shares back in demand
Regulatory clarity has reignited strong interest in NSE shares in the unlisted and grey markets. Over the past few days, prices of NSE’s unlisted shares have risen by around 10–15%, as investors rushed to gain exposure ahead of a potential IPO.
Analysts say Sebi’s latest comments have been widely interpreted as a turning point in a process that has dragged on for nearly a decade. With draft papers expected by the end of March, investors now see a sharply increased probability of an IPO in the coming months.
Unlisted trading platforms currently peg NSE’s valuation at around Rs 5 lakh crore, with recent trades reported at about Rs 2,095 per share, though prices vary widely based on liquidity and deal size. NSE has not yet disclosed how much equity it plans to list or the valuation it is targeting.
Tejas, vice president–marketplace at Qapita, said the investor reaction was unsurprising. According to him, the exchange operates in a near-duopoly market with very high entry barriers across regulation, technology, and capital. The renewed regulatory momentum has prompted buyers to step in, pushing unlisted prices higher in a short span.
Another factor adding complexity to the listing is NSE’s unusually large shareholder base. With around 1,77,807 shareholders, it is India’s largest unlisted company by number of investors.
Lawyers working on the IPO are expected to design mechanisms to ensure fair exit opportunities for this wide shareholder base, with priority likely to be given to long-term institutional investors such as banks and foreign funds.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)