The National Stock Exchange of India (NSE)is the bourse that processes more derivatives trades than any other exchange on the planet. And it finally took its long-awaited first step towards a public listing, filing its Draft Red Herring Prospectus (DRHP) with markets regulator SEBI on Wednesday, 17 June 2026. Here is why it could become the most valued IPO in Indian history.

The IPO will be entirely an Offer for Sale (OFS) of up to 14.89 crore equity shares, representing approximately 6 per cent of NSE’s total equity, with no fresh capital being raised by the company itself. The exchange will list on BSE, as stated in the DRHP.

Based on NSE’s valuation in the unlisted market, the issue size is estimated at approximately ₹30,000 crore ($3.3 billion), which would surpass Hyundai Motor India’s ₹27,870-crore offering from October 2024 to become the largest IPO in Indian stock market history.

“Historically, businesses with strong moats and consistent earnings growth tend to command premium valuations, which is one of the reasons why BSE trades at a premium multiple today,” explained Prasenjit Paul, Fund Manager at 129 Wealth.

“Until now, BSE was the only listed exchange available to investors. With the NSE IPO, investors will have a wider choice to participate in the long-term growth of India’s capital markets. That said, investment returns will ultimately depend on the valuation at which the IPO is offered. If NSE comes at a meaningful discount to BSE on comparable parameters, it could create an attractive short-term opportunity. Otherwise, the story is more suited for long-term investors who want exposure to the structural growth of the Indian capital market ecosystem,” added Paul.

The draft documents also revealed that State Bank of India (SBI) is the single largest seller, offering up to 2.475 crore shares, followed by MS Strategic (Mauritius) Limited, Canada Pension Plan Investment Board, Aranda Investments (Mauritius) Pte Ltd, Bank of Baroda, Stock Holding Corporation of India, General Insurance Corporation, and multiple state-owned insurance companies. Singapore’s Temasek (via Aranda Investments) and other foreign institutional shareholders are among the international sellers. Notably, Life Insurance Corporation (LIC), NSE’s single largest shareholder with a 10.72 per cent stake, is not selling any shares in this offering.

A look into NSE financials

In FY 2026, the exchange reported revenue from operations of ₹16,601 crore, a net profit of ₹10,302 crore, and a net margin of approximately 51 per cent. The exchange has 129.09 million unique registered investors and a market capitalisation of listed entities totalling ₹411.25 trillion.

With zero debt on its books, NSE generated ₹23,836 crore in net operating cash flow in FY 2026.

This filing ends a near-decade-long saga. NSE first tried to list in 2016, but SEBI stalled the process over governance concerns and the co-location controversy, a case in which certain brokers were accused of receiving preferential access to trading systems.

NSE filed a settlement application in June 2025, offering to pay ₹1,388 crore to resolve the matter, and SEBI granted in-principle approval in January 2026. The board formally approved the IPO on February 9, 2026. Twenty merchant bankers have been appointed to manage the offering.