The National Stock Exchange of India (NSE) has moved a significant step closer to its much-anticipated initial public offering (IPO) after the Securities and Exchange Board of India (SEBI) granted in-principle acceptance of revised settlement terms related to long-standing regulatory issues.
On Thursday, July 30, 2026, SEBI communicated its agreement to the revised settlement terms proposed by the exchange. This settlement addresses the regulatory cases involving NSE's 'co-location' and 'dark fibre' matters, which have been key hurdles delaying its maiden public issue.
SEBI Settlement Details
As part of the settlement, SEBI has demanded an additional payment of Rs 714.74 crore from NSE. This amount is supplementary to the Rs 776.47 crore already deposited by the exchange with SEBI, bringing the total settlement amount to Rs 1,491.211 crore. NSE confirmed that the financial impact of this settlement amount was already provisioned in the financial year ending March 31, 2026, with a cash outflow of Rs 714.74 crore.
The exchange clarified that this resolution has no other material adverse impact on its day-to-day operations. The revised settlement terms had specifically offered Rs 1,223.6 crore for the co-location case and Rs 267.7 crore for the 'dark-fibre' case.
Strong Q1 Performance for NSE
Alongside the IPO progress, NSE reported robust financial results for the June 2026 quarter (Q1FY27). The exchange saw its net profit jump by 7% year-on-year (YoY) to Rs 3,120 crore, up from Rs 2,924 crore in the corresponding period last year. Its Profit After Tax (PAT) margin remained stable at 5.9%.
Revenue from operations also improved significantly, rising 12% YoY to Rs 4,560 crore for the reported quarter, compared to Rs 4,032 crore a year ago. Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) surged 15% YoY to Rs 3,594 crore from Rs 3,130 crore in Q1FY26, with the operating EBITDA margin improving to 79%.
IPO Timeline and Size Expectations
With the regulatory cases now settled, market participants are optimistic about the swift progression of NSE's IPO. Experts anticipate that NSE could receive observations for its Draft Red Herring Prospectus (DRHP) by mid-August, with a potential stock market listing targeted for September 2026.
International roadshows for the NSE IPO are currently underway, complemented by engagements with domestic institutions. The exchange aims to raise an estimated Rs 28,000-30,000 crore through its maiden offer. This IPO is structured entirely as an Offer-for-Sale (OFS) of up to 14.89 crore equity shares, potentially making it India's largest IPO to date.
Unlisted shares of NSE are currently trading around Rs 1,950-2,000 apiece, valuing the company at a market capitalization of Rs 4.85-4.95 lakh crore. Key stakeholders like State Bank of India (SBI), Bank of Baroda, GIC RE, and Life Insurance Corporation of India (LIC) are expected to offload parts of their stake in the exchange.