NSE IPO Big Update: Exchange seen filing DRHP by early June; what next?

NSE IPO big update: The National Stock Exchange (NSE) is expected to file its draft red herring prospectus (DRHP) by early June 2026, marking a key step in its long-awaited initial public offering (IPO). According to sources, the move will formally initiate the regulatory process with the Securities and Exchange Board of India (SEBI), bringing the exchange closer to its market debut after years of delays.

The filing will signal that the IPO has entered its final preparation phase, with the exchange likely to move towards listing later in the year, subject to regulatory approvals and market conditions.

When is NSE expected to file its DRHP?

According to sources NSE is preparing to submit its DRHP by early June 2026. This document will include detailed financials, risk factors and the structure of the public issue, and will be reviewed by SEBI before the IPO can proceed.

The timeline suggests that the exchange is accelerating its listing plans, with internal preparations and stakeholder coordination nearing completion.

What happens after the DRHP filing?

Once the DRHP is filed, SEBI will review the document and may seek clarifications or revisions. After receiving regulatory approval, NSE can proceed with the next steps, including finalising the issue size, price band and launch dates.

The IPO could then open for subscription later in 2026, depending on market conditions and regulatory timelines. This phase will be crucial in determining investor demand and final valuation.

Why the IPO is structured as an OFS

The NSE IPO will be entirely an Offer for Sale (OFS), meaning the exchange itself will not raise fresh capital. Instead, existing shareholders will sell part of their holdings to public investors.

This approach is common for large, well-capitalised institutions. Under SEBI rules, IPOs exceeding Rs 10,000 crore require a minimum dilution of 2.5 per cent, though NSE is expected to target a higher range of around 4–5 per cent.

The OFS structure allows early investors to partially exit while ensuring broader public participation.

What is the expected size and valuation?

Market estimates based on unlisted share activity suggest that NSE could be valued at around $55 billion, or approximately Rs 4.5 lakh crore.

At this valuation, a 5 per cent stake sale would translate into an issue size of about $2.75 billion, roughly Rs 22,000–23,000 crore. If realised, this would make the NSE IPO one of the largest public offerings in India.

Why did NSE’s IPO take so long?

NSE has been attempting to list since 2016, but its plans were delayed due to regulatory hurdles and legal disputes with SEBI, particularly around governance and co-location issues.

These challenges stalled progress for several years. However, a likely monetary settlement is expected to resolve pending issues, clearing the path for the IPO.

The delay also meant that NSE’s rival, BSE, went public earlier in 2017.

What makes this IPO complex?

One of the biggest challenges in executing the IPO is NSE’s large shareholder base. With around 1,77,807 investors, it is India’s largest unlisted company by number of shareholders.

Managing such a wide base adds operational complexity, especially when coordinating stake sales under the OFS route. Additionally, regulations prevent shareholders participating in the OFS from buying shares in the same IPO, adding another layer of complexity.

NSE Q3FY26 performance

The exchange has reported steady financial growth, supported by strong derivatives trading activity. For the third quarter ending December 2025, NSE posted a 15 per cent rise in net profit to Rs 2,408 crore. Its consolidated revenue from operations also grew by nearly 7 per cent on a quarter-on-quarter basis, reflecting resilience in trading volumes and market participation. The bourse is yet to announce its financial results for the March quarter.