The much-awaited IPO this month is of the National Stock Exchange (NSE), which will be open for bidding from September 17, 2026. The IPO size is Rs 22,569 crore at the upper price band, making it the biggest stock exchange IPO and the second-biggest public offer in India. But that's not the only milestone NSE will touch. The real change will be upon listing. Based on the IPO size, experts predict NSE could list more than 3 times bigger than its rival, BSE. Also, the Nifty benchmark exchange will land in the top 15 most valued companies list in India.
While there is too much hype around the NSE IPO, the real question is whether the public offer is worth bidding.
All About NSE IPO:
The IPO will be open from September 17 to September 21st at a price band of Rs 1,700 to Rs 1,785 per share. The IPO size is Rs 22,569 crore, purely through an offer for sale. There is an employee discount of Rs 170 on the IPO.
Major promoters, especially PSUs like State Bank of India, Bank of Baroda and General Insurance Corporation of India, New India Assurance, National Insurance Company, and United India Insurance, are offloading heavy stakes in the IPO for the public to buy. In total, up to 12,64,36,650 equity shares will be offered for sale.
From the total size, 50% is allotted to qualified institutional buyers (QIBs), 35% to retail individual investors, and 15% to non-institutional investors. The bid lot size is 8 shares and in multiples thereof.
Second Biggest IPO Of India:
At a size of Rs 22,562 crore, NSE is the second largest IPO of the country. The title of mother of all IPOs in India is held by Hyundai with Rs 27,870 crore IPO size. NSE has surpassed the LIC IPO, which was launched in 2021 with a Rs 21,008 crore offer. At fourth and fifth are Paytm and Coal India's IPO of Rs 18,300 crore and Rs 15,200 crore, launched in 2021 and 2010, respectively.
Founded in 1992, NSE is the country's largest stock exchange and one of the world's leading multi-asset exchange platforms. It provides a vertically integrated platform for trading, clearing, listing, and other services comprising data feed, data terminal, and licensing services.
It is also a leader in India's duopolistic equity exchange industry by becoming the largest stock exchange in terms of total turnover in the cash market and in equity derivatives, a title that has been enjoyed since FY01.
NSE To Enter Top 15 Most Valued Companies List
Taking into consideration NSE's upper price band of Rs 1,785, the market capitalization of the exchange is estimated to be around Rs 4,41,788 crore upon listing. If this becomes reality, NSE will hold the title of 13th largest company in India, surpassing giants like Infosys, Kotak Mahindra Bank, Adani Enterprises, Adani Ports, Adani Power, Maruti Suzuki and Axis Bank.
It will also become the closest rival to pharma giant Sun Pharmaceuticals, which is at 12th rank with m-cap of Rs 4,41,947 crore. NSE would have the potential to dethrone even FMCG and gems & jewellery behemoths like Hindustan Unilever and Titan Company if it records a blockbuster listing.
NSE To List 3 Times Bigger Than BSE
But for now, NSE is expected to become bigger than BSE upon listing. In fact, the gap will be over 3-fold between the two peers.
At present, BSE has a market valuation of over Rs 1,38,231 crore, which is a sizable quarter of the estimated valuation of NSE.
"NSE is India's largest exchange with more than 90% market share in most categories except index options and commodities. Also, it is the most diversified exchange, offering products across segments. NSE also has a suite of technology/data offerings, which accounted for 12% of FY26 revenues and augments revenue diversification. Over the FY24-FY26 period, total Revenue/ PAT have grown at a CAGR of 6%/11%, respectively. Profitability over the past two fiscal years has been impacted due to regulatory charges such as settlement with SEBI and provisions for the colocation and dark fiber case," analysts at SBI Securities said in a note.
They added that NSE is well positioned to benefit from structural tailwinds and remains the best franchise among peers.
Why compare with BSE? Analysts at JM Financial explain that BSE is the listed peer of NSE, given its operation as a comparable multi-asset stock exchange with presence across cash market, equity derivatives, mutual funds and other segments (including exchange-traded derivatives and wholesale debt market) similar to those of the Company. Further, BSE Limited exhibits a broadly similar revenue mix, with income streams comprising transaction charges, listing services, data-related services and charges, and other exchange-related revenues.
Now comes the question an investor must ask. Is NSE worth buying?
"At the upper price band of Rs. 1,785, the issue is priced at 42.9x FY2026 diluted EPS of Rs. 41.62, which looks reasonable given NSE's superior market share and cash-generation profile versus closest listed peer BSE Ltd., and is further cushioned by a robust Core SGF of Rs. 13,392.30 crore. Given the dominant moat, strong return ratios and a fair valuation, we recommend Subscribe, for both listing gains and long-term exposure to India's capital-markets growth," said analysts at Sushil Finance.
Giving a subscribe recommendation, analysts at Ventura Securities pointed out that NSE reported revenue of Rs 16,601.3 crore in FY26 compared to Rs 17,140.7 crore in FY25, reflecting a decline of 3.1%. EBITDA declined 11.1% YoY to Rs 11,264.6 crore, with EBITDA margin moderating to 67.9% from 73.9% in FY25. Net profit declined 12.2% YoY to Rs 10,071.3 crore, resulting in a PAT margin of 60.7%. Despite the moderation in earnings, NSE maintained strong profitability metrics with FY26 ROE of 32.1% and ROCE of 24.2%. The IPO will support growth initiatives, leveraging strong capabilities while managing government dependency and execution risks.
Disclaimer: The views and recommendations expressed are solely those of the individual analysts or entities and do not reflect the views of Goodreturns.in or Greynium Information Technologies Private Limited (together referred as "we"). We do not guarantee, endorse or take responsibility for the accuracy, completeness or reliability of any content, nor do we provide any investment advice or solicit the purchase or sale of securities. All information is provided for informational and educational purposes only and should be independently verified from licensed financial advisors before making any investment decisions.
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