Unlisted shares of the National Stock Exchange (NSE) are witnessing strong demand in the unofficial market amid growing anticipation over its long-awaited public listing. On Tuesday, the shares surged as much as 27% in a single day, jumping from ₹1,775 to ₹2,250. The rally continued on Wednesday as well, with prices climbing to ₹2,300, marking a more than 50% gain in just five trading sessions.
With this surge, the NSE's unofficial market capitalization crossed ₹5.70 lakh crore, cementing its position among India's most valuable companies.
The sharp uptick follows reports that the exchange is nearing a 1,000-crore settlement with the Securities and Exchange Board of India (SEBI) to resolve pending regulatory issues and revive its IPO plans. Additionally, limited supply in the unlisted market, strong financial performance, and attractive valuations are fueling investor interest.
"The NSE has always been a sought-after name in the unlisted space, thanks to its clear leadership, robust business model, and the critical role it plays in India’s financial infrastructure. But with such healthy FY25 performance, demand from investors has only intensified—leading to this milestone of crossing 100,000 shareholders," InCred Money said in a note. Vikaas M Sachdeva, managing director of Sundaram Alternatives, said, “The share price has risen exponentially. There is lot of institutional interest. Its IPO will be absorbed easily.”
The NSE's IPO journey, stalled for nearly a decade, may finally see progress. After its first application in 2016, regulatory hurdles and controversies delayed the listing. However, SEBI Chairman Tuhin Kanta Pandey recently indicated that the remaining issues are resolvable.
Pandey said on Wednesday that the application for initial public offer (IPO) of India's largest bourse NSE wasn't something that cannot be sorted. Last week, he had said that the regulator is working with the exchange to iron out various issues. This has raised hopes that the NSE could get listed soon.
He also mentioned that discussions between the NSE and SEBI are ongoing, with both parties eager to resolve the matter in a timely manner.
The NSE ranks as the world's second-largest stock exchange by trading volume, holding a 17.5% market share in 2024. It also leads globally in derivatives trading, with 81.7% of contracts traded. As of March 31, the NSE dominated India's equity markets, commanding 93.6% of the cash segment and 99.9% of equity futures.