NSE IPO Decoded: Why it matters, who is selling and what investors need to know — All FAQs answered

The National Stock Exchange (NSE) has filed its draft red herring prospectus (DRHP) with market regulator Sebi for its much-awaited initial public offering (IPO), reviving a listing plan that had remained pending for several years.

The proposed issue is estimated at around Rs 30,000 crore. It is expected to become the largest IPO in India's stock market history, overtaking Hyundai Motor India's Rs 27,870-crore public issue launched in 2024.

The IPO will be an Offer for Sale (OFS) only, meaning existing shareholders will sell part of their holdings, and NSE itself will not raise any fresh funds from the issue.

Here is a detailed look at what the IPO means and the key details investors should know.

What Is NSE's IPO?

NSE has proposed to sell up to 14.89 crore shares through the IPO. The issue will be entirely an OFS, with existing shareholders selling nearly 6 per cent of the exchange's paid-up equity capital.

Since there is no fresh issue component, the money raised through the IPO will go to the selling shareholders and not to NSE. The exchange has not yet announced the price band or issue dates. These details will be disclosed at a later stage.

Why Is This IPO Important?

The filing marks a major milestone for India's largest stock exchange. NSE's listing plans had remained stalled for nearly a decade due to regulatory issues and the co-location controversy.

With the DRHP now filed, the exchange has taken a significant step towards becoming a publicly listed company. The issue is expected to attract strong interest from institutional and retail investors because of NSE's dominant position in India's capital markets.

At an estimated size of around Rs 30,000 crore, the IPO is likely to become the biggest public issue ever launched in India. The issue would surpass Hyundai Motor India's Rs 27,870-crore IPO, which currently holds the record for the largest IPO in the country.

Before Hyundai, LIC held the record after raising Rs 21,000 crore through its IPO in 2022.

Who Is Selling Shares?

Several existing shareholders will reduce their stake through the IPO. Among the selling shareholders, State Bank of India (SBI) will be the largest seller in the IPO, proposing to offload up to 2.48 crore shares.

MS Strategic (Mauritius) Limited will sell up to 1.60 crore shares, while Canada Pension Plan Investment Board (CPPIB) plans to divest 1.18 crore shares.

Aranda Investments (Mauritius) Pte Ltd will offload 1.12 crore shares. Bank of Baroda, Stock Holding Corporation of India and GIC Re will sell 1.09 crore shares, 1.08 crore shares and 1.06 crore shares, respectively.

New India Assurance will divest 1.05 crore shares, while National Insurance Company and United India Insurance Company will each sell 60 lakh shares through the offer for sale.

LIC Not Participating In The OFS

Life Insurance Corporation of India (LIC), the largest shareholder in NSE, will not sell any shares in the IPO. LIC currently owns a 10.72 per cent stake in the exchange, making it the single largest shareholder.

The decision means LIC will continue to remain a key investor in NSE after the public issue.

Does NSE Have A Promoter?

According to the draft papers, NSE does not have any identifiable promoter. The exchange is professionally managed and has a diversified shareholder base comprising financial institutions, insurance companies, banks and global investors.

This makes NSE different from many listed companies that are controlled by a promoter group.

Where Will NSE Shares Be Listed?

NSE's shares will be listed on the Bombay Stock Exchange (BSE). This is standard practice since an exchange cannot list its shares on its own trading platform. Once listed, investors will be able to buy and sell NSE shares through BSE.

How Will The IPO Be Allocated?

The issue will be launched through the 100 per cent book-building process. As per the proposed allocation structure:

• Up to 50 per cent of the issue can be allocated to Qualified Institutional Buyers (QIBs)
• At least 15 per cent will be reserved for Non-Institutional Investors (NIIs)
• At least 35 per cent will be reserved for retail investors

The company has also made provisions for employee reservation in the IPO.

How Large Is NSE's Business?

NSE is India's largest stock exchange and one of the world's biggest exchanges in terms of trading activity. The exchange was incorporated in 1992 and began operations in 1993.

Over the years, it has become the country's leading platform for trading in equities, derivatives, currencies and other financial products. According to the DRHP, the exchange had 12.91 crore investor accounts as of March 31, 2026. Fund mobilisation through NSE stood at Rs 20.3 lakh crore.

The exchange's technology infrastructure handles massive volumes of trading activity every day. As of March 2026, its systems processed an average of 12-14 billion messages daily.

The highest cumulative number of trades across segments recorded on a single day stood at 293.85 million on June 4, 2024.

NSE Financial Performance

NSE has reported strong growth in revenue and profit over the past few years. For FY26, revenue from operations stood at Rs 16,601 crore. Net profit during the year came in at Rs 10,302 crore.

For comparison, revenue from operations was Rs 14,780 crore in FY24, while net profit stood at Rs 8,305 crore. The numbers highlight the exchange's strong profitability and growing business scale.

The high profit levels also reflect the increasing participation of investors in Indian financial markets and the growth in trading volumes across segments.

Could NSE Enter India's Top-10 Most Valuable Companies?

Market participants estimate NSE's valuation at more than Rs 5 lakh crore based on trading in the unlisted market. At this valuation, NSE could rank among India's 10 most valuable listed companies after its market debut.

The valuation would place it ahead of several blue-chip firms and in the same league as companies such as Bajaj Finance, Larsen & Toubro, LIC and Hindustan Unilever.

As of June 17, Reliance Industries remained India's most valuable company with a market capitalisation of over Rs 18 lakh crore, followed by HDFC Bank, Bharti Airtel and ICICI Bank.

If NSE lists at the expected valuation, it could emerge as one of the country's most valuable financial market institutions.