Latest update on NSE IPO: When exchange is likely to file DRHP

Latest update on NSE IPO: India’s largest stock exchange, the National Stock Exchange of India (NSE), has accelerated preparations for its much-awaited initial public offering (IPO). The exchange is expected to appoint a large group of merchant bankers and legal advisors as part of the listing process.

Merchant bankers likely to be appointed

According to people familiar with the development, the National Stock Exchange of India may appoint around two dozen merchant bankers for the IPO.

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This may include about five foreign merchant bankers and 16 domestic merchant bankers. The exchange is also likely to appoint two law firms to handle the legal aspects of the public issue.

The move signals that the IPO process is entering a more formal stage after years of delays.

Committee decision expected soon

A committee of the National Stock Exchange of India is expected to finalise the appointment of merchant bankers and legal advisors by Monday, according to the plan being discussed.

Once the intermediaries are appointed, the exchange will begin preparing the detailed IPO documents.

DRHP filing timeline

The exchange is planning to file its Draft Red Herring Prospectus (DRHP) within about three months after the appointment of merchant bankers.

The DRHP filing is the first formal step toward launching the IPO and seeking approval from the market regulator.

Stake sale plan

The IPO may involve the sale of around 2.5 per cent to 5 per cent stake in the National Stock Exchange of India.

SEBI issued NoC on January 30

The development follows the No Objection Certificate (NoC) issued by the Securities and Exchange Board of India (SEBI) on January 30, clearing a key regulatory hurdle for the exchange to proceed with its long-delayed listing plans.

Earlier, it was believed that approval of NSE’s settlement from the High Powered Advisory Committee (HPAC) on Settlement would be necessary before the regulator could issue the NoC.

However, since the process was taking longer than expected, and key departments within the Securities and Exchange Board of India had agreed in principle to resolve the matter under the consent mechanism, the NoC was issued, effectively delinking it from the settlement process.

The National Stock Exchange of India had earlier attempted to go public in 2016, but the plan was put on hold after regulatory investigations into alleged violations, including issues linked to an alleged co-location facility scam.

The matter also reached the Delhi High Court, where both NSE and the Securities and Exchange Board of India were made parties during the proceedings.

NSE financial performance

The National Stock Exchange of India reported a 15 per cent rise in consolidated profit after tax to Rs 2,408 crore for the quarter ended December 31, 2025, compared with Rs 2,098 crore in the previous quarter (Q2 FY26).

The exchange’s total income increased 6 per cent to Rs 4,395 crore in Q3 FY26, up from Rs 4,160 crore in Q2 FY26.

Earnings per share (EPS), on a non-annualised basis, stood at Rs 9.73 in the December quarter, compared with Rs 8.48 in the previous quarter.