NSE IPO: Enter the Key Market Maker

• Large Cap. ₹ 4,40,000 cr.
• IPO is open from 17-21st Sep, at ₹ 1700-1785/share
• Raising ₹ 22,500 cr. in IPO by Offer for Sale (OFS)
• PE of 42.6x of FY26 earnings
• Sector: Stock Exchange, Market Infrastructure
• Opinion: Buy

Summary

• Why NSE: India’s capital markets are benefiting from rising financialisation, increasing investor participation and growing adoption of market-linked products. NSE is the dominant exchange in equity and derivatives, with a large investor base, high market share and an integrated ecosystem covering trading, clearing, listing, indices and market data. Its established derivatives franchise, technology infrastructure and international presence through GIFT City provide avenues for long-term growth.  Management is good. Balance sheet is healthy, margins excellent and dividend yield high at 2%.
• Why now in IPO: In the IPO process, NSE has cleaned up its act. It has settled past issues. It has professionalized the management team. The current wave of IPO market growth will expand and deepen the Indian equity markets, and reflect well on the growth at NSE. The IPO opens up the market infrastructure leader to a better shareholding pattern, closer scrutiny and better global alignment. The IPO pricing gives investors a relatively attractive entry point.
• Risks: 1) High dependence on transaction charges and equity-options activity 2) Regulatory changes may affect trading volumes and revenues 3) Concentration risk – top 10 trading members represented 46.8% of FY26 operating revenues 4) Competition from BSE (in derivatives) and MCX 5) Due to IPO valuations, share appreciation will be earnings growth driven 6) Technology, cybersecurity and system-disruption risks 7) Large business base may result in moderate growth.
• Opinion: Buy for the long term

IPO highlights

• IPO application dates: 17–21^st Sep’26, with a Price Band of ₹ 1,700–1,785, FV ₹ 1. One Lot is 8 shares.
• The ₹ 22,569 cr. IPO is entirely an Offer for Sale (OFS) of 12.64 cr. shares. There is no fresh issue.
• The Grey Market Premium (GMP) of NSE is ₹ 161/share over the IPO price, or 9%. (16th Sep’26)
• Since the IPO is entirely an OFS, the proceeds will accrue to the selling shareholders, and NSE will not receive any proceeds from the issue.
• IPO allocation quotas are: QIB up to 50%, NII 15%, Retail 35%.
• IPO allotment is expected by 22^nd Sep ’26, and listing on BSE is scheduled for 24^th Sept’26.

Introduction to NSE

• National Stock Exchange of India (NSE) is India’s leading stock exchange and market infrastructure institution, with a presence across India’s capital markets. It commenced operations as a stock exchange in 1994, so has been in India’s capital-market ecosystem for over three decades.
• NSE was the first exchange in India to introduce electronic, screen-based trading, which helped modernise securities trading in the country.
• NSE has grown into a large-scale market institution, with 13.24 cr. unique registered investors, 26.14 cr. registered investor accounts, 1,328 trading members and 3,005 listed entities as of June 2026.
• The aggregate market capitalisation of companies listed on NSE was ₹ 474 lakh cr. as of June 2026, reflecting its significant scale in the Indian equity market.
• NSE has established a strong global position, ranking among the world’s largest exchanges by trading activity and retaining the leading position globally in equity-derivative contracts traded. (See Fig.1a.)

Fig 1a – NSE Global Position in Equity Derivatives,

Fig 1b NSE Financials (Q1 FY27 EPS is annualised)

• NSE’s FY26 Revenue was ₹ 18,713 cr., Operating EBITDA ₹ 14,520 cr. and PAT ₹ 10,371 cr., while EPS was ₹ 41.62. Revenue, EBITDA & PAT grew at 7%, 11.8% and 11.7% CAGR, resp., over FY24–26, Fig. 1b.
• NSE’s Q1 FY27 Revenue was ₹ 5,252 cr., EBITDA ₹ 4,263 cr. and PAT ₹ 3,112 cr. Q1 FY27 performance remained strong, with EPS annualised based on (Q1 FY27 PAT multiplied by 4), see Fig. 1b.
• NSE has built a diversified market-infrastructure ecosystem through its subsidiaries and associates across multiple financial-market activities. The company’s flagship Nifty 50 index, launched in 1996, has become one of the key benchmarks for the Indian equity market.
• Leadership – Ashishkumar Chauhan is MD/CEO of NSE; Viral Mody is ED Vertical1 (Critical Operations), and Sanjay Shorey is ED Vertical2 (Regulatory, Compliance, Risk Mgt., and Investor Grievance).
• NSE has no identifiable promoter. LIC was its largest shareholder with a 10.72% stake prior to the IPO.

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Disclaimers and Disclosures

• Punit Jain discloses that he is a shareholder of NSE (<1% of mkt cap.) since Jun’23. Other than this, Punit Jain, JainMatrix Investments Bangalore (JMI) and its promoters/ employees have no other direct or financial interest in NSE, and no known material conflict of interest as on date of publication of this report. Punit Jain may take part in the IPO in line with his views.
• This document has been prepared by JMI, and is meant for use by the recipient only as information and is not for circulation. This document is not to be reported or copied or made available to others without prior permission of JMI. This report should not be considered or taken as an offer to sell or a solicitation to buy or sell any security. The information contained in this report has been obtained from sources that are considered to be reliable. However, JMI has not independently verified the accuracy or completeness of the same. Neither JMI nor any of its affiliates, its directors or its employees accepts any responsibility of whatsoever nature for the information, statements and opinion given, made available or expressed herein or for any omission therein. AI has been used to create this report, primarily for images.
• Investment in the securities markets are subject to market risks. Read all the related documents carefully before investing. The suitability or otherwise of any investments will depend upon the recipient’s particular circumstances and, in case of doubt, advice should be sought from a RIA Registered Investment Advisor.
•  JMI has been an equity investment adviser commercially since Nov 2012, and is SEBI certified and registered since 2016, under SEBI (Research Analysts) Regulations. Registration granted by SEBI, and certification from NISM in no way guarantee the performance of the Research Analyst or provide any assurance of returns to investors. Any questions should be directed to punit.jain@jainmatrix.com. Name of the RA as registered with SEBI – Punit Jain, SEBI Registration No. INH200002747. Logos / brand name –