The National Stock Exchange of India (NSE) is reportedly preparing to launch its long-awaited Initial Public Offering (IPO) by September 2026, targeting a listing before the Shradh (Pitru Paksha) period. This significant development follows the Securities and Exchange Board of India's (SEBI) in-principle acceptance of revised settlement terms in the pending co-location and dark fibre cases, removing a major regulatory obstacle that had delayed the public issue for several years.
Regulatory Hurdle Cleared
On July 30, 2026, the NSE announced that SEBI had agreed to its revised settlement proposal regarding the co-location and dark fibre controversies. This agreement mandates an additional payment of Rs 714.74 crore from the exchange, supplementing the Rs 776.47 crore already deposited. The total settlement amount now stands at Rs 1,491.21 crore, which the NSE confirmed has been fully provisioned in its financial statements for FY26.
The exchange clarified that the immediate cash outflow would be limited to Rs 714.74 crore and that this settlement would not materially impact its daily operations. This resolution effectively closes the regulatory proceedings, paving the way for the NSE's market debut.
India's Potentially Largest IPO
With the regulatory overhang largely addressed, market observers anticipate SEBI will grant its final observations on NSE's draft IPO papers by the second week of August. This would allow the public issue to open in the third week of September, ahead of the Shradh period which runs from September 26 to October 10.
The proposed IPO is expected to be an entirely offer-for-sale (OFS) of up to 14.89 crore equity shares, aiming to raise an estimated Rs 28,000-30,000 crore. This substantial issue size could make it India's largest IPO to date. Existing shareholders, including major public sector entities like State Bank of India, Bank of Baroda, General Insurance Corporation of India, and Life Insurance Corporation of India, are expected to dilute their stakes through the OFS.
Strong Financial Performance
The momentum for the IPO is supported by the NSE's robust financial performance. For the June 2026 quarter, the exchange reported a 7 percent year-on-year increase in net profit, reaching Rs 3,120 crore, up from Rs 2,924 crore in the previous year. Revenue from operations also saw a healthy 12 percent year-on-year rise to Rs 4,560 crore, while EBITDA climbed 15 percent to Rs 3,594 crore.
Unlisted shares of NSE are currently trading around Rs 1,950–2,000 apiece, reflecting a valuation of nearly Rs 4.9 lakh crore. Market participants believe the successful settlement with SEBI significantly improves the prospects of the exchange making its long-awaited stock market debut this year.