National Stock Exchange Files for IPO
The National Stock Exchange (NSE) has taken a significant step by submitting its draft red herring prospectus (DRHP) to launch its initial public offering (IPO), marking a pivotal moment in the exchange’s transition to public markets. The DRHP reveals that this offering is entirely an offer for sale (OFS), without any new issuance component.
In total, 14.89 crore equity shares are set to be sold by current shareholders through the OFS. The largest selling shareholder is the State Bank of India (SBI), which plans to sell up to 2.47 crore shares. This is followed by Canada Pension Plan Investment Board (CPPIB), with intentions to offer 1.87 crore shares, MS Strategic (Mauritius) Limited with 1.6 crore shares, Aranda Investments (Mauritius) Pte Ltd with 1.12 crore shares, and Bank of Baroda which will sell 1.09 crore shares.
Other shareholders participating in this process include Stock Holding Corporation of India Ltd (1.08 crore shares), General Insurance Corporation of India (1.06 crore shares), The New India Assurance Company Ltd (1.05 crore shares), National Insurance Company Ltd (60 lakh shares), and United India Insurance Company Ltd (60 lakh shares).
At the time of the DRHP filing, Life Insurance Corporation of India (LIC) held the position of the largest shareholder in NSE, with a stake of 10.72%. This was succeeded by Aranda Investments (Mauritius) Pte Ltd at 4.54%, Stock Holding Corporation of India Limited at 4.44%, and SBI Capital Markets Limited at 4.33%.
The IPO management will be led by a consortium of 20 merchant bankers, including Kotak Mahindra Capital, Morgan Stanley, HSBC, J.P. Morgan, SBI Capital Markets, HDFC Bank, and JM Financial, in cooperation with eight law firms. Earlier this year, the exchange achieved regulatory approval for its listing, marking a crucial milestone in its pursuit of entering the public markets over the past decade.
Financially, the NSE remains one of India’s most lucrative market infrastructure institutions. In FY26, its operating revenue decreased by 3% year-on-year to Rs 16,601 crore, while profit after tax dipped by over 15% to Rs 10,302 crore. With this listing, NSE aims to join BSE Ltd, the only publicly traded stock exchange in India, which made its market debut in 2017.