MUMBAI: In a major development leading to the listing of India’s largest stock exchange, capital market regulator - Securities and Exchange Board of India (Sebi) - has approved the long-awaited initial public offering (IPO) of the National Stock Exchange (NSE). The IPO, expected to open for subscription around mid-September, will be among the largest fundraises ever from the primary market.
NSE filed draft papers with SEBI in June this year for a gargantuan public offering pegged at roughly Rs 30,000 crore. The IPO comprises the sale of 14.89 crore shares by existing shareholders, who will collectively divest nearly 6% of their stake in the exchange.
NSE, which has around 1.8 lakh shareholders, is valued at over Rs 5 lakh crore with its shares trading in the range of Rs 1,950-2,050 in the unlisted market, according to market participants. Upon listing, NSE is expected to become one of the most valuable listed financial institutions in India.
Sebi’s go-ahead for NSE IPO comes amid a revival in India's primary market. According to Prime Database, 60 IPOs raised Rs 72,165 crore between January-August 2026. However, most of the action took place in the past two months. July and August together accounted for 33 deals and Rs 49,592 crore, or nearly 69% of the total issue amount raised in the first eight months.
Last week, Sebi gave the green light to billionaire Mukesh Ambani’s Jio Platforms Ltd to float an initial public offering (IPO) that could raise around $4 billion (approximately Rs 37,700 crore).
The move also follows the Supreme Court’s rejection of Sebi’s appeal against NSE in the co-location matter, lifting a major regulatory hurdle for the exchange’s listing plans.
The approval is a major milestone for NSE, whose listing plans had remained on hold for nearly a decade due to regulatory issues, including the co-location controversy. The NSE made its first attempt to list in 2016, but was advised to withdraw the plan as regulatory probes gathered pace over co-location and dark fibre cases.
The IPO is poised to unleash massive wealth for its current shareholders, with institutions, financial titans and market veterans set to pocket windfalls running into thousands of crores. Since some investors bought NSE shares at a per-share valuation of less than Rs 1, they will see massive compounding on their investment, given its shares are now trading at around Rs 2,000 each in the unlisted market.
Among selling shareholders, State Bank of India (SBI) is expected to emerge as the largest beneficiary. The country's largest lender plans to offload 2.47 crore shares, potentially generating nearly Rs 4,950 crore based on current unlisted market prices. SBI's weighted average acquisition cost stands at just 80 paise per share, suggesting the substantial appreciation the NSE has generated over the years.
MS Strategic (Mauritius), a Morgan Stanley fund, will make about Rs 2,934 crore, while Singapore's Temasek stands to make Rs 2,067 crore via its Aranda Investment arm, and Canada Pension Plan Investment Board will gain Rs 1,871 crore. As per Reuters calculation, the top 10 investors offering shares are set for a windfall worth $2.6 billion, based on acquisition prices disclosed in the draft prospectus.