NDTV Profit's special research section collates quality and in-depth equity and economy research reports from across India's top brokerages, asset managers and research agencies. These reports offer NDTV Profit's subscribers an opportunity to expand their understanding of companies, sectors and the economy.
DRChoksey Report
NSE's Rs 22,569-crore initial public offering opened for subscription on Thursday, with the issue getting subscribed 43% on the first day of bidding.
The issue received bids for 3.83 crore shares against 8.86 crore shares on offer, as per data available with the exchanges.
Also Read | Layoffs Are Rising In Tech, But These Skills Are Helping People Unlock Better Pay
The category for retail and non-institutional portion, were subscribed 0.44 times and 0.72 times, respectively. Qualified Institutional Buyers (QIB) was subscribed 0.19 times, and employee portion subscribed 0.97 times.
The offering is India's second-largest public issue after Hyundai Motor India's Rs 27,870-crore IPO in 2024.
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 22,569 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.
About the compay
National Stock Exchange of India combines trading, clearing, listing, indices and market data on one platform. It has been India's largest exchange by cash market and equity derivatives turnover since FY-2001 and accounted for 51.18% of global equity derivatives contracts in FY26.
Its scale is the key strength: 132.37 million unique investors, 3,005 listed entities and 1,868 colocation racks support a highly profitable model, with a 76% normalised operating Ebitda margin and no borrowings.
The main issue is concentration in derivatives. Transaction charges contribute 79% of revenue and equity options alone contribute 60%, while regulation and taxes have reshaped the segment.
Valuation:
Expensive to trade, reasonable to own.
At the upper price band, NSE's implied value is about Rs 4.42 lakh crore, equivalent to around 42.9x trailing earnings, which sit below the FY25 peak. This is a premium to most listed financial companies, but the valuation reflects NSE's near-monopoly position, low capex requirements, high payout potential and long-term growth opportunity.
The selling shareholders also reduced the OFS from 14.9 crore shares to 12.64 crore shares, suggesting that the price leaves limited room for sellers to exit at attractive valuations. Overall, the investment case is better viewed as owning a long-term compounder rather than trading the listing.
The key risks to the thesis would be NSE's options share falling below around 65%.
Outlook:
According to the brokerage, NSE's long-term outlook remains constructive. The listing could see strong investor interest given the reduced OFS. Over the next one to two years, FY26 appears to be the earnings trough, with profit recovery supported by cash-market activity, new investors, listings, and data and index licensing.
The key risk is BSE gaining options market share, while over the longer term NSE remains a financialisation play with low capital needs and strong cash generation.
DRChoksey recommends 'Subscribe for long term'. The valuation is not inexpensive, so the case depends more on earnings growth than on a higher multiple.
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
