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Geojit Report
National Stock Exchange of India (NSE) launched its initial public offering today, September 17, 2026 with the issue getting subscribed 16% as of 11:10 AM on the first day of bidding. The issue closes for subscription on September 21, 2026.
The IPO received bids for 8,86,42,911 shares against 1,32,55,744 shares on offer, as per BSE data till 11:00 am
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The category for non-institutional investors was subscribed 26%, and the portion for retail investors received 21% subscription as of 11:10 AM.
IPO Details
NSE has fixed the price band in the range of Rs 1,700 to Rs 1,785 per share, with a face value of Rs 1 per share.
The Rs 22,562 crore IPO is a main-board issue. It is a 100% Offer for Sale (OFS). Since this is a pure OFS, NSE will not receive any proceeds from the IPO.
Investors can bid for a minimum of 8 shares and in multiples thereof. At the upper price band investors would require a minimum investment of Rs 14,280.
The shares are scheduled to list on the BSE on September 24, 2026.
Kotak Mahindra Capital Company Ltd., Morgan Stanley India Company Pvt Ltd, HSBC Securities and Capital Market (India) Pvt Ltd., SBI Capital Markets Ltd, J.P Morgan India Pvt Ltd. are the book running lead manager for the issue while MUFG Intime India Pvt Ltd. is the registrar to the offer.
As per the offer structure, the Net Offer is allocated as follows:
- Qualified Institutional Buyers (QIBs): Up to 50% of the Net Offer
- Non-Institutional Investors (NIIs / HNIs): Not less than 15% of the Net Offer
- Retail Individual Investors (RIIs): Not less than 35% of the Net Offer.
Purpose of IPO
The offer consists Offer for Sale (OFS) of up to Rs 22,562 crore. The OFS comprises shares offered by 20 corporate and 3 individual selling shareholders. The top 10 selling shareholders are: State Bank of India (up to 15,969,410 shares), Canada Pension Plan Investment Board (11,874,060 shares), Aranda Investments (Mauritius) Pte Ltd (up to 11,246,336 shares), MS Strategic (Mauritius) Ltd (up to 11,000,000 shares), The New India Assurance Company Ltd (up to 10,500,000 shares), SBI Capital Markets Ltd (up to 8,780,590 shares), Bank of Baroda (up to 7,690,375 shares), Stock Holding Corporation of
India Ltd (up to 6,187,500 shares), General Insurance Corporation of India (up to 6,187,500 shares), and United India Insurance Company Ltd (up to 6,000,000 shares).
Key strengths
• Significant revenue contribution from Market leader in India – a liquid market for all stakeholders.
• Well positioned to benefit from India's structural growth tailwinds which drive strong network effects for NSE
• Strong brand synonymous with trust, efficiency and transparency, across trading platform as well as clearing, settlement and market
supervisory role
• Technology platform built for scale and resilience
• Combination of scale, growth, profitability and sustained cash generation
• Experienced and skilled management team committed to upholding strong corporate governance standards.
Key strategies
• Continue to act as a catalyst for new capital formation in India across asset classes and continue to attract new issuers and investors.
• Continuing to provide a transparent, orderly, and fair access to all market participants, fostering investor confidence and promoting
sustainable growth in capital markets.
• Further commitment to technology infrastructure and continuous modernization.
• Continue to drive market innovation and business diversification
• Automate and organise large markets in India through launch of new products
• Ensuring continued trust among all stakeholders and fostering a culture of responsible investing and financial inclusion
• Forging global partnerships and collaborations, including building presence in GIFT City, International Financial Services Centre as a
“Gateway to the World”
• Enhancing data monetisation opportunities through comprehensive market data ecosystem
• Building a strategic offshore presence of NSE to harness global opportunities.
Key Risks
• Derivatives Concentration Risk: ~69% of FY26 revenue was generated from F&O trade
transaction charges, indicating high reliance on derivatives trading volumes.
• Regulatory Risk: Operates in a SEBI-regulated industry and is subject to periodic
inspections, evolving regulations, and compliance requirements.
Valuation
At the upper price band of Rs 1,785, NSE is valued at P/E of ~42x on FY26 adjusted EPS on a post-issue basis, which is lower compared to its peer. The company benefits from its dominant position across India's equity and derivatives markets, supported by strong network effects, a vast investor ecosystem, and scalable technology infrastructure.
Its asset-light business model enables consistently high margins and cash generation, while growing capital market participation and increasing financialisation provide a strong long-term growth runway. Hence, the brokerage has assigned a
'Subscribe' rating for medium to long-term investors.
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