The Initial Public Offering (IPO) of the National Stock Exchange of India (NSE) is set to open for subscription on Thursday, September 17, and will conclude on Monday, September 21, 2026. The issue, structured entirely as an offer for sale (OFS), aims to raise Rs 22,562 crore, with a price band fixed between Rs 1,700 and Rs 1,785 per equity share. Each share carries a face value of Re 1, and investors can apply for a market lot of 8 equity shares. Eligible employees will receive a discount of Rs 170 per share.
Brokerage Views on NSE IPO
Religare Broking has assigned a 'Neutral' rating to the NSE IPO. While acknowledging the exchange's robust market position and significant long-term growth opportunities, the brokerage also highlighted concerns regarding its valuation and potential regulatory impacts. At the upper end of the price band, NSE's market capitalization is estimated at approximately Rs 4.42 lakh crore.
India's capital markets are experiencing substantial growth, driven by increasing investor participation, expanding market capitalization, and a surge in mutual fund assets. Religare noted that NSE's registered investor base grew from 30.87 million in March 2020 to 132.37 million by June 2026. Concurrently, India's mutual fund assets under management (AUM) reached Rs 82.22 lakh crore by June 2026. The growing adoption of passive investment products and index funds further presents opportunities for NSE across various services, including trading, index services, market data, and clearing.
Financial Performance and Risks
NSE's financial performance showed a slight moderation in the latest fiscal year. Revenue from operations stood at Rs 16,601.31 crore in FY26, a decrease from Rs 17,140.68 crore in FY25, though higher than Rs 14,780.01 crore in FY24. Profit after tax (PAT) also declined to Rs 10,302.06 crore in FY26 from Rs 12,187.69 crore in FY25. Operating EBITDA for FY26 was Rs 11,097.90 crore, down from Rs 12,646.88 crore in the preceding fiscal. The operating EBITDA margin moderated to 66.85 per cent in FY26 from 73.78 per cent in FY25, and the PAT margin fell to 50.98 per cent from 55.30 per cent.
Religare emphasized that the IPO's valuation, at a P/E of 42.9x, reflects NSE's established market position and future growth potential but leaves limited room for earnings disappointments. Key risks include regulatory developments, particularly Sebi's measures on options trading, which can significantly influence trading volumes and transaction-based income. The brokerage also pointed out NSE's high dependence on transaction charges, especially from the options business, making it sensitive to fluctuations in trading activity.
Investment Outlook
Ravi Singh, Chief Research Officer at Master Capital Services, advised that subscribing to the NSE IPO depends on an investor's objectives. Since it's an OFS, the company will not receive fresh capital. Singh highlighted that NSE trades at a P/E of 42.9x, which is lower than BSE's 53.3x, while offering higher revenue and PAT with similar EBITDA margins. He suggested that investors seeking listing gains might consider applying, while long-term investors could find NSE's strong financials and growth potential appealing, with potential to accumulate shares on dips after listing. The latest Grey Market Premium (GMP) for NSE is reportedly around 9 per cent.