NSE IPO: India’s Largest Market Debut Enters Final Countdown

The upcoming IPO of the National Stock Exchange of India (NSE) is entering its final countdown and is expected to become the largest public issue in Indian history. The IPO will be entirely an Offer for Sale (OFS), meaning the exchange itself will not raise fresh money. Instead, existing shareholders will sell part of their holdings to the public. Reports suggest that roughly 4 to 4.5% of NSE’s equity could be sold, potentially making the issue worth about Rs. 23,000 crore.

NSE has asked all eligible shareholders to submit an “Expression of Interest” (EOI) by April 27, 2026, before 5:00 PM IST if they want to participate in the OFS. Submitting an EOI does not guarantee that their shares will ultimately be included in the IPO, but it is the first mandatory step in the process. Investors can choose to sell either all or only a part of their holdings.

NSE has imposed strict eligibility criteria. Only those shareholders who have continuously held fully paid-up NSE shares since June 15, 2025, are allowed to participate in the IPO sale process. This means that people who bought NSE shares recently in the unlisted market will not be able to tender them in the IPO. The rule is aimed at rewarding long-term investors and discouraging short-term speculation.

One of the most important restrictions in this IPO is that any shareholder who chooses to sell shares in the OFS cannot also apply as an investor in the same IPO. In practical terms, a shareholder must decide whether they want to exit partially or fully, or whether they want to stay invested and potentially buy more later. They cannot do both in the same issue. This rule has been introduced to ensure transparency and prevent any misuse of the IPO allocation process.

Shareholders who do not sell all of their holdings in the IPO will face a six-month lock-in period after the allotment. During this time, they will not be allowed to sell their remaining shares on the stock exchange after NSE gets listed. This is intended to prevent a sudden rush of selling immediately after listing, which could otherwise create sharp volatility in the share price.

To manage this massive issue, NSE has appointed 20 merchant bankers, which is the highest number ever used in an Indian IPO. Leading firms include Kotak Mahindra Capital, Morgan Stanley, JPMorgan Chase, SBI Capital Markets, and Citigroup. The sheer number of advisers shows the enormous size and complexity of the issue, as well as the expectation of heavy demand from both Indian and global institutional investors.

Although NSE has not yet announced the official IPO price band, its shares are already trading in the unlisted market at around Rs. 1,925 per share. This suggests that investors are expecting strong demand and a potentially high listing valuation. However, unlisted-market prices can be volatile and often move sharply based on speculation, so the eventual IPO pricing may differ.

The excitement around the IPO comes from NSE’s dominant position in Indian capital markets. The exchange handles the vast majority of India’s equity and derivatives trading and is one of the most profitable financial infrastructure businesses in the country. Since it has never been publicly listed before, this IPO will give ordinary investors their first opportunity to own a stake in India’s biggest exchange operator.

Even though it is the country’s largest exchange, NSE is not expected to list its shares on its own platform. Instead, the stock is likely to be listed on BSE Limited. Indian regulations generally do not allow a stock exchange to list itself on its own platform because of conflict-of-interest concerns.