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National Stock Exchange i.e. NSE has filed its draft red herring prospectus i.e. DRHP with SEBI and BSE for IPO. This IPO will be completely an offer for sale, that is, the existing shareholders will sell their stake.
The valuation of NSE in the unlisted market is around Rs 5 lakh crore, on the basis of which experts are estimating that the size of this IPO could be around Rs 30,000 crore. If this happens, it could be the country’s biggest IPO.
Hyundai Motor India had an IPO worth Rs 27,000 crore in 2024. Which is currently the biggest public issue in the country. Whereas LIC had brought an IPO of Rs 20,557 crore.
The issue will be completely offer for sale
This IPO of NSE will be completely offer for sale. This means that the company will not raise money from the market by issuing any new shares, rather its existing investors will sell their 6% stake.
A special thing in this share sale structure is that the country’s largest government insurance company LIC, which is an existing shareholder in the exchange, is not selling its shares in this IPO. NSE shares will be listed on BSE, just like BSE’s own shares are listed on NSE.
SBI is the biggest seller, these government and foreign companies will also sell shares
According to the draft papers, SBI is the biggest seller in this IPO, which is going to sell about 2.47 crore shares. Apart from this, Mauritius based company MS Strategic Limited is offering 1.6 crore shares and Canada Pension Plan Investment Board is offering 1.18 crore shares.
The board approved on Monday and the committee on Wednesday
Before filing the DRHP, NSE’s IPO committee met on Wednesday to complete the final filing procedures. Earlier on Monday itself, the NSE board had given green signal to the draft papers.
The board of NSE had approved this IPO proposal on 6 February, which became possible after the No Objection Certificate (NOC) received from SEBI in January 2026. This approval of the regulator was very important because it was kept aside from the settlement of some old pending disputes related to the co-location matter.
The matter was stuck since 2016, co-location dispute was the reason.
With this DRHP filing, a long wait for the country’s largest stock exchange is going to end. NSE’s listing plan was stuck for the last 10 years due to regulatory concerns and especially the ‘co-location controversy’.
NSE had first filed draft papers for an offer for sale worth about Rs 10,000 crore in 2016. However, SEBI had then advised NSE to withdraw its proposal in view of corporate governance concerns in the co-location matter.
Since then, the exchange has made several improvements in its governance and compliance and has presented its views to the regulator several times for approval. This time the exchange has appointed 20 merchant bankers and legal advisors for preparation.
NSE wants to settle the case by paying ₹1,387 crore
NSE had filed a settlement application on June 20, 2025 to resolve the co-location issue (in which select brokers were accused of giving prior access to the exchange’s trading system). Under this, the exchange had offered a payment of Rs 1,387.39 crore to settle the matter.
However, according to reports, SEBI’s High-Powered Advisory Committee (HPAC) has recommended settling the case for around Rs 1,880 crore. This amount includes Rs 1,200 crore disgorgement, Rs 380 crore interest and the remaining amount as settlement charge. This recommendation is currently under consideration with the panel of whole-time members of SEBI.
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