The National Stock Exchange (NSE) is aiming to launch its long-awaited initial public offering (IPO) around the middle of September and complete its stock market listing by the end of the month, as India's largest bourse moves closer to concluding a process that has been delayed for nearly a decade. The exchange is preparing for the final round of investor roadshows as it moves through the remaining regulatory steps for the public issue, according to people familiar with the development.
The proposed IPO will be entirely an offer-for-sale (OFS) of up to 148.9 million shares by existing shareholders. NSE itself will not receive proceeds from the share sale. The final valuation, offer price and size of the IPO will depend on investor feedback and market conditions closer to the launch.
September listing in focus
NSE is working towards opening the IPO around mid-September, with a possible listing before the end of the same month.
The timetable, however, remains dependent on completion of the regulatory process. While NSE has crossed a crucial hurdle with the Securities and Exchange Board of India clearing the way for the IPO process, the exchange still needs to complete the remaining formalities before launching the issue.
The proposed offering is expected to be one of the largest and most closely watched public issues in India's capital market.
NSE dominates India's equity derivatives market and is also the country's largest stock exchange by trading volumes in several segments, making its own listing particularly significant for investors.
148.9 million shares on offer
The IPO is planned as a pure OFS involving as many as 148.9 million equity shares.
Since NSE does not have an identifiable promoter, the shares will be offered by existing institutional and other shareholders participating in the transaction.
An OFS differs from a fresh issue because the money raised goes to the selling shareholders rather than the company. Consequently, NSE will not raise fresh capital through the proposed transaction.
The final number of participating shareholders and their respective share sales will become clearer through the offer documents.
Market estimates have placed NSE's potential valuation at more than Rs 5 lakh crore, although the actual valuation will be determined through the IPO pricing process. At that valuation, even a relatively small dilution could make the offering one of India's biggest public issues.
Investor roadshows planned
NSE is preparing to engage with domestic and overseas institutional investors as it works towards finalising the offering.
Investor roadshows are an important part of a large IPO because they allow the company and its bankers to gauge demand and receive feedback on valuation before the price band is determined.
The response from institutional investors will consequently play an important role in deciding the eventual size and pricing of the NSE issue.
The exchange's dominant market position, profitability and importance to India's financial infrastructure are expected to make the offering one of the most closely tracked IPOs of the year.
Decade-long wait nears end
NSE's listing plans have had an unusually long history.
The exchange first initiated steps towards an IPO about a decade ago, but the process became entangled in regulatory investigations and legal disputes, particularly issues relating to preferential access allegedly provided to certain brokers through its co-location facility.
The controversy prevented NSE from proceeding with its proposed listing and resulted in years of regulatory proceedings.
Over time, the exchange worked to resolve several outstanding matters with SEBI. Settlement of regulatory cases and resolution of other issues eventually created a pathway for the IPO process to resume.
One significant settlement involved the Trading Access Point architecture and network connectivity case, in which NSE agreed to pay Rs 643 crore in 2024.
The subsequent regulatory clearance represented a major turning point for an IPO that had remained pending despite NSE becoming an increasingly dominant institution in India's capital markets.
NSE likely to list on BSE
The proposed listing would also create an unusual situation in India's stock market: NSE shares are expected to trade on rival exchange BSE.
As an exchange cannot list its own shares on its own trading platform, NSE's equity would be listed and traded on BSE.
BSE itself has been publicly listed since 2017, when it became the first Indian stock exchange to enter the public market.
NSE's arrival would therefore give investors direct access to shares of both of India's major stock exchanges.
The public issue could also unlock liquidity for NSE's existing shareholders. Its shares have long changed hands in the unlisted market, where investor interest has remained strong despite uncertainty surrounding the timing of the IPO.
With the regulatory obstacles progressively clearing and investor meetings approaching, attention will now shift to the final offer structure, valuation and price band.
If the current schedule holds, September could finally bring an end to one of the longest waits for a major IPO in India's capital market history.