NSE moves closer to long-awaited $2 billion IPO, files DRHP with SEBI

The National Stock Exchange (NSE) has taken a major step towards its long-awaited public listing by filing its Draft Red Herring Prospectus (DRHP) with market regulator SEBI for an initial public offering (IPO) estimated at around $2 billion. The proposed issue is expected to be structured entirely as an Offer for Sale (OFS), with no fresh equity being issued by the exchange.

According to people familiar with the development, several existing shareholders, including State Bank of India (SBI), are expected to sell part of their holdings through the IPO. Other likely sellers include state-owned financial institutions and insurance companies that have held stakes in the country's largest stock exchange for years.

The IPO is expected to rank among the biggest share sales in India this year and could value NSE at more than $50 billion, reflecting its dominant position in India's capital markets. Reuters had earlier reported that investors such as SBI, Life Insurance Corporation of India (LIC), Temasek, Canada Pension Plan Investment Board (CPPIB) and ChrysCapital were among those considering stake sales as part of the listing process.

NSE's public listing has been more than a decade in the making. The exchange first explored listing plans in 2016, but regulatory hurdles and the prolonged co-location controversy delayed the process. Momentum returned earlier this year after SEBI cleared the path for the exchange to proceed with its IPO plans.

The exchange's board had already approved a listing through the OFS route, allowing existing investors to monetise part of their holdings while maintaining the current capital structure. SBI, along with its subsidiary SBI Capital Markets, holds a combined stake of around 7.5 per cent in the bourse, making it one of the significant institutional shareholders. LIC remains the largest shareholder with a stake exceeding 10 per cent.

Market participants expect strong investor interest in the issue, given NSE's leadership in equity derivatives trading and its position as India's largest stock exchange by trading volumes. The listing is also expected to provide liquidity to nearly 1.8 lakh shareholders of the unlisted company.

The IPO process will now move to the next stage of regulatory review by SEBI. Subject to approvals and market conditions, the exchange is aiming to complete the listing later this year, potentially making it one of the landmark capital market events of 2026.