NSE filed DRHP for a ₹30,000 crore IPO via OFS.
SBI, CPPIB and GIC Re are among selling shareholders.
NSE reported ₹10,302 crore net profit in FY26.
The long-awaited initial public offering (IPO) of the National Stock Exchange (NSE) has finally moved a step closer to reality, with India's largest stock exchange filing its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (Sebi) and the BSE on Wednesday.
The proposed IPO is entirely an offer for sale (OFS), with existing shareholders collectively divesting around 6% of the exchange's equity. Based on NSE's estimated unlisted market valuation of around ₹5 lakh crore, market participants expect the issue size to be approximately ₹30,000 crore, making it one of the largest IPOs in India's capital markets and bigger than Hyundai Motor India's ₹27,000-crore public issue in 2024.
1 June 2026
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Under the proposed structure, the shares will be listed on the BSE, mirroring the arrangement under which BSE shares are currently listed on the NSE. Notably, Life Insurance Corporation of India (LIC), one of NSE's key shareholders, is not participating in the proposed share sale.
According to the DRHP, State Bank of India (SBI) is the largest selling shareholder, offering up to 24.75 million shares. Other major sellers include Canada Pension Plan Investment Board, which is offloading up to 11.87 million shares, MS Strategic (Mauritius) with 16 million shares and Aranda Investments (Mauritius) with 11.24 million shares. Public sector entities including Bank of Baroda, General Insurance Corporation of India (GIC Re), The New India Assurance Company, National Insurance Company and United India Insurance Company are also among the selling shareholders.
IPO Revives Listing Plan Stalled Since 2016
The filing marks a major milestone for NSE, whose listing plans have remained stalled for nearly a decade due to regulatory concerns arising primarily from the co-location controversy.
The exchange had initially filed draft papers in 2016 for an IPO estimated at around ₹10,000 crore. However, Sebi later advised NSE to withdraw the proposal amid governance concerns linked to allegations that certain brokers received preferential access to the exchange's trading systems.
Since then, the exchange has implemented several governance and compliance reforms while making multiple representations to the regulator seeking approval for its listing. The process gained momentum after NSE received a No Objection Certificate (NOC) from Sebi in January 2026. The exchange's board subsequently approved the IPO proposal in February, while the DRHP was cleared by the board earlier this week before being filed.
The regulator's approval was significant because it was delinked from the settlement of pending co-location-related proceedings, allowing the exchange to move ahead with the IPO process despite unresolved legal matters.
NSE currently has nearly 1.8 lakh shareholders, making it one of the most widely held unlisted companies in the country. The exchange has appointed 20 investment banks as book-running lead managers for the IPO, making it one of the largest syndicates assembled for an Indian public offering.
Co-Location Settlement And Financial Performance
The co-location case continues to remain a key overhang. NSE had filed a settlement application with Sebi in June 2025 and subsequently offered to pay ₹1,387.39 crore to resolve the matter. Media reports had earlier suggested that Sebi's High-Powered Advisory Committee recommended a settlement amount of around ₹1,880 crore, including disgorgement, interest and other charges. The recommendation is understood to be pending consideration by Sebi's Whole-Time Members.
Despite the prolonged regulatory issues, NSE has continued to strengthen its financial performance. According to the DRHP, the exchange reported revenue from operations of ₹16,601 crore and a net profit of ₹10,302 crore in FY26, reinforcing its position as India's dominant stock exchange and one of the world's largest derivatives trading platforms.
The IPO has attracted a large group of investment banks, including Kotak Mahindra Capital, JM Financial, Citigroup Global Markets India, HSBC Securities, JP Morgan India, SBI Capital Markets, Axis Capital, ICICI Securities, Motilal Oswal Investment Advisors, Nuvama Wealth Management and several others. Some institutions, including SBI Capital Markets, Morgan Stanley India and ICICI Securities, will have marketing-only roles because of their association with certain selling shareholders.
With the DRHP now filed, investors will closely watch Sebi's observations, the final issue size and valuation, and whether the long-awaited listing finally delivers one of the most anticipated stock market debuts in Indian capital market history.
