Leading domestic brokerage firms Nirmal Bang Securities and Spark's Midas Equities have issued 'Subscribe' ratings for the upcoming Initial Public Offering (IPO) of the National Stock Exchange of India (NSE). Both firms cite NSE's dominant market position, strong profitability, and the significant structural growth potential of Indian capital markets as key reasons for their positive long-term outlook.
NSE's Market Dominance and Profitability
The NSE stands as India's largest stock exchange, maintaining its leadership in cash market and equity derivatives turnover since the fiscal year 2001. Analysts at Nirmal Bang emphasize NSE's strong long-term valuation proposition, underpinned by its extensive scale and robust financial performance. Spark's Midas Equities further notes NSE's near-monopoly status in India's market infrastructure, its integrated platform, debt-free balance sheet, and solid cash flow generation.
Near-Term Concerns and Competitive Landscape
Despite the optimistic long-term view, Nirmal Bang has highlighted a near-term concern regarding the moderation in options premium volume. The brokerage points out a decline in NSE's options segment in FY26, while the Bombay Stock Exchange (BSE) has gained traction and is rapidly increasing its share. This competitive shift could potentially impact NSE’s transaction revenue growth, warranting a cautious short-term perspective.
Other potential risks identified by Nirmal Bang Institutional Equities include possible SEBI intervention in index derivatives, continued market share loss in options, and further regulatory or litigation charges.
Valuation and IPO Details
The NSE IPO is offered at a price range of Rs 1,700-1,785 per equity share, with a lot size of 8 shares. The issue aims to raise Rs 22,568 crore through a pure Offer For Sale (OFS) of up to 12.64 crore shares by existing shareholders. The IPO opened for subscription on Thursday, September 17, and will close on Monday, September 21. On its first day, the issue saw 43 percent subscription, attracting nearly 12 lakh applications.
At the upper price band of Rs 1,785, the offer values NSE at 42.9 times FY26 EPS and 13.8 times March 2026 book value. Nirmal Bang considers this valuation balanced and reasonable, especially when compared to BSE's higher multiple of 54.6 times, providing an attractive entry point for investors in India's market infrastructure leader.
NSE's Operational Footprint
Established in November 1992, the NSE operates a comprehensive, vertically-integrated platform encompassing listing services, trading, clearing, indices, and market data provision. The shares are slated for listing on BSE Ltd on September 24.