NSE IPO likely by September before Shradh; check the possible timeline for the mega issue

The long-awaited initial public offering (IPO) of the National Stock Exchange of India (NSE) appears to be entering its final stretch, with sources indicating that the country's largest stock exchange is likely to hit the primary market by September 2026, ahead of the Shradh (Pitru Paksha) period, provided the remaining regulatory process stays on schedule.

People familiar with the development told Business Today that the Securities and Exchange Board of India (SEBI) is said to grant observations on NSE's draft IPO papers by the second week of August, paving the way for the issue to open in the third week of September.

India's leading exchange is targeting a listing before September 26, when the 16-day Shradh period begins and continues until October 10. The timeline comes after SEBI took a significant step toward resolving one of the biggest hurdles for the exchange's public listing.

SEBI clears major regulatory roadblock
On July 30, 2026, NSE announced that SEBI had given its in-principle acceptance to the revised settlement terms proposed by the exchange in the long-pending co-location and dark fibre cases.

According to the exchange, SEBI has sought an additional payment of Rs 714.74 crore, over and above the Rs 776.47 crore already deposited by NSE. The total settlement amount stands at Rs 1,491.21 crore, which the exchange said had already been fully provided for in its financial statements for FY26.

NSE clarified that the immediate cash outflow would be limited to Rs 714.74 crore and that the settlement would have no material adverse impact on its day-to-day operations. The settlement effectively brings closure to the regulatory proceedings related to the co-location and dark fibre matters, removing a long-standing obstacle that had delayed NSE's IPO for several years.

NSE IPO to become India's biggest-ever public issue
With the regulatory overhang largely addressed, market participants believe the exchange is now close to receiving SEBI's final observations on its draft red herring prospectus (DRHP). The proposed IPO is expected to raise Rs 28,000-30,000 crore through an entirely offer-for-sale (OFS) of up to 14.89 crore equity shares, making it potentially India's largest IPO to date.

Existing shareholders, including State Bank of India, Bank of Baroda, General Insurance Corporation of India, and Life Insurance Corporation of India, are expected to dilute their holdings through the OFS. International roadshows are said to be already underway, while the exchange has also begun engaging domestic institutional investors as part of its pre-IPO outreach.

NSE reports strong Q1 performance
The IPO momentum comes alongside another quarter of healthy financial performance. NSE reported a 7 per cent year-on-year (YoY) increase in net profit to Rs 3,120 crore for the June 2026 quarter, compared with Rs 2,924 crore a year ago. Revenue from operations rose 12 per cent YoY to Rs 4,560 crore, while EBITDA climbed 15 per cent  to Rs 3,594 crore.

Unlisted shares of NSE are currently trading around Rs 1,950–2,000 apiece, implying a valuation of nearly Rs 4.9 lakh crore. Market participants believe the successful settlement with SEBI has significantly improved the likelihood of the exchange making its long-awaited stock market debut this year.