NSE IPO Set to Raise $2.75 Billion; LIC, SBI, Temasek, CPPIB Among Key Investors as Mega Listing Nears $55 Bn

National Stock Exchange is moving closer to its long-awaited public listing, with plans for a major initial public offering (IPO) expected later this year. The proposed share sale could raise around $2.75 billion, based on an estimated valuation of nearly $55 billion, placing it among the largest IPOs in India's capital markets in recent years.

Temasek, CPPIB, LIC, SBI, Morgan Stanley Set to Join NSE IPO

Several prominent institutional investors are preparing to participate in the share sale, including Temasek Holdings and Canada Pension Plan Investment Board. Other key stakeholders include Life Insurance Corporation of India (LIC), State Bank of India (SBI) and Morgan Stanley, along with multiple domestic and global investors.

Reuters Sources indicated that a recent deadline was set for investors to formally express interest in participating in the IPO process through merchant bankers, signalling that preparatory steps are advancing.

The IPO is expected to be structured as an offer for sale (OFS), meaning existing shareholders will dilute part of their holdings rather than the exchange issuing new shares. Around 5% of the company is likely to be sold in the public offering, according to people familiar with the development.

NSE IPO Valuation at $55 Billion Puts It Among India's Largest Listings

The estimated $55 billion valuation is derived from trading activity in unlisted NSE shares, which serves as a benchmark for investor expectations ahead of the IPO. If achieved, this would position the offering alongside some of India's largest listings, including the anticipated public issue of Reliance Jio Platforms.

With over 177,000 shareholders, NSE is currently India's largest unlisted company by investor base. This wide ownership structure is expected to add complexity to documentation and coordination during the listing process.

The exchange has faced a prolonged delay in its IPO journey, largely due to regulatory issues involving the Securities and Exchange Board of India. However, recent developments suggest that a monetary settlement may soon resolve the dispute, clearing a key hurdle for the listing.

NSE confirmed that its board has approved the IPO plan, though it did not disclose detailed timelines. The exchange is now expected to move towards filing its draft red herring prospectus (DRHP) with SEBI in the coming weeks, following the release of its latest financial results.

The NSE has been attempting to go public since 2016. In contrast, its domestic rival BSE Ltd successfully listed in 2017, leaving NSE's IPO as one of the most anticipated pending listings in the country.

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