Summary:
The National Stock Exchange (NSE) has moved closer to its long-awaited stock market debut by filing its Draft Red Herring Prospectus (DRHP) with SEBI and BSE for a proposed ₹30,000 crore IPO. The issue will be entirely an Offer for Sale (OFS), with existing shareholders selling up to 14.89 crore shares, representing nearly 6% of NSE's equity. State Bank of India will be the largest selling shareholder, while LIC will not participate in the share sale. The filing marks a significant milestone after nearly a decade of delays caused by regulatory concerns linked to the co-location case. With an estimated valuation of over ₹5 lakh crore, NSE could become one of India's most valuable listed companies. The exchange's leadership in equity and derivatives trading, combined with its expanding investor base, is expected to drive strong interest in the IPO.
India's largest stock exchange, the National Stock Exchange (NSE), has formally initiated its long-awaited public listing process by filing its Draft Red Herring Prospectus (DRHP) with SEBI and the BSE. The proposed initial public offering (IPO) is expected to be valued at nearly ₹30,000 crore, potentially making it one of the largest public issues in India's history.
The offering will consist entirely of an Offer for Sale (OFS), with existing shareholders offloading up to 14.89 crore equity shares, equivalent to nearly 6% of NSE's total equity. As a result, the exchange itself will not receive any fresh capital from the issue. Based on NSE's current unlisted market valuation of around ₹5 lakh crore, market estimates place the IPO size at approximately ₹30,000 crore.
SBI Tops the List of Selling Shareholders
Among the shareholders participating in the OFS, State Bank of India (SBI) will be the biggest seller, offering up to 2.47 crore shares. Other major investors reducing their holdings include MS Strategic (Mauritius) Limited, which plans to sell 1.60 crore shares, and Canada Pension Plan Investment Board with 1.19 crore shares.
Aranda Investments (Mauritius) Pte. Ltd. has proposed selling 1.12 crore shares, while Bank of Baroda and Stock Holding Corporation of India will each divest nearly 1.10 crore shares. Public sector insurance companies are also participating in the sale. General Insurance Corporation of India (GIC Re) will sell 1.06 crore shares and The New India Assurance Company will offload 1.05 crore shares. National Insurance Company and United India Insurance Company are each selling around 60 lakh shares.
Notably, Life Insurance Corporation of India (LIC), despite being a shareholder in NSE, is not part of the proposed share sale.
End of a Decade-Long Wait
The DRHP filing marks a major breakthrough for NSE, whose listing plans have remained stuck for nearly ten years. The exchange had originally filed IPO documents in 2016 for a proposed ₹10,000 crore issue. However, regulatory concerns related to the co-location controversy forced the process to be put on hold.
The situation changed earlier this year when SEBI granted NSE a No Objection Certificate (NOC) in January 2026, paving the way for the exchange's public listing. NSE's board approved the IPO proposal in February, and the draft prospectus has now been officially submitted.
Co-location Case and Settlement Efforts
The co-location matter, which centred on allegations that certain brokers received preferential access to NSE's trading infrastructure, remained one of the biggest hurdles to the exchange's listing ambitions.
In June 2025, NSE submitted a settlement application and offered ₹1,387.39 crore to resolve the issue. Earlier reports indicated that SEBI's High-Powered Advisory Committee had recommended a settlement amount of nearly ₹1,880 crore, including disgorgement and interest components. The matter is still under regulatory consideration.
Over the years, NSE has implemented several governance, compliance and operational reforms, helping strengthen investor confidence and clear the path toward listing.
Explore : How NSE Stacks up agaisnt BSE, with the current IPO issue
Valuation Could Place NSE Among India's Largest Companies
With an estimated valuation exceeding ₹5 lakh crore, NSE is expected to debut among India's most valuable listed companies. At this level, its market capitalisation would surpass Infosys, which is currently valued at around ₹4.7 lakh crore.
The valuation would also place NSE in the same league as companies such as Bajaj Finance, Larsen & Toubro, LIC and Hindustan Unilever, highlighting the scale and significance of the exchange within India's financial ecosystem.
Strong Market Presence Supports Investor Interest
NSE remains the dominant player in India's equity and derivatives markets and is widely regarded as one of the country's most valuable unlisted businesses. The exchange's registered investor base grew at a CAGR of 26.9%, rising from 3.09 crore investors in March 2020 to 12.91 crore by March 2026.
During FY26, the platform facilitated fundraising of ₹20.3 trillion, while investors from more than 99% of India's postal codes participated through its network.
Given its market leadership, technology-driven operations and extensive investor reach, the NSE IPO is expected to attract strong domestic and global interest, offering investors a direct opportunity to participate in India's expanding capital markets infrastructure story.
