NSE IPO this fiscal? Unlisted share price, mcap, Motilal Oswal views & expected timeline

The National Stock Exchange of India (NSE) is gearing up for its long-awaited initial public offering (IPO), with plans to seek approval from the Securities and Exchange Board of India (Sebi). This move comes as NSE looks to resolve previous disputes and aim for a potential listing by the fourth quarter of FY26. This strategic decision is driven by the exchange's desire to enhance its market presence and increase transparency.

NSE's financial performance has been robust, reporting a 17 per cent year-on-year (YoY) increase in total income to Rs 19,177 crores for FY25. The revenue from operations also saw a 16 per cent rise, reaching Rs 17,141 crores. These figures were driven by strong transaction charges and listing revenues, which increased by 12 per cent and 41 per cent YoY, respectively. Such growth underscores the exchange's ability to leverage its market position effectively.

The exchange's profit after tax (PAT) surged by 47 per cent YoY to Rs 12,188 crores, underscoring its solid financial health. Additionally, the operating Ebitda rose by 28 per cent to Rs 12,647 crores, demonstrating enhanced operational efficiency and strategic initiatives..

Motilal Oswal Wealth highlights NSE's dominant market position with a 94 per cent market share in cash equities and a near-monopoly in equity index futures and options. These factors contribute significantly to NSE's revenue, with transaction charges accounting for approximately 72 per cent of its total income. This dominance in the market is a critical driver of its financial success.

Earnings per share (EPS) and return on equity (ROE) have also shown substantial growth, with EPS reaching Rs 49 and ROE at 45 per cent for FY2025. These metrics reflect NSE's strong performance and efficient management of resources, further solidifying its reputation in the financial sector, the the leading financial services player said.

NSE's competitive edge is further reinforced by its flagship index, the Nifty50, which is widely regarded as a benchmark for Indian capital markets. The exchange also benefits from increasing retail participation, despite India having one of the lowest rates globally at 3-4 per cent. This potential for growth in retail investment is a promising avenue for future expansion.

Regarding the IPO, NSE's journey involves resolving long-standing issues, including co-location and dark fibre disputes. Once cleared by the markets watchdog, NSE is reported to take several months to prepare its draft red herring prospectus (DRHP), with an anticipated listing by the fourth quarter of FY26, said Motilal Oswal.

Motilal Oswal suggests that NSE's IPO could enhance liquidity and provide investors with more opportunities. The removal of ISIN freeze earlier this year has already simplified share transfers, allowing investors to trade NSE's shares like other unlisted shares. This development is expected to attract more investors and boost market activity.

Key financial indicators show NSE's strong foundation, with a book value per share of Rs 123 and a PAT margin of 58 per cent for FY25. These metrics, alongside a strategic focus on operational efficiency, position NSE favourably for future growth. The exchange's ability to maintain strong margins and a solid balance sheet will be instrumental in its continued success.

Jasbir Singh Dhawda, Founder of Pune-based boutique firm Meera Associates said that NSE's shares have remained range-bound lately as investors await clarity around its IPO, leading to slowdown in its demand. "The best is fully priced in at the current unlisted price range of Rs 2,200-2,300 apiece. Any news around its IPO is likely to move the stock price from the current slumber," he said.

At the current price range of NSE, the exchange is commanding a total market capitalization close to Rs 5.5-5.7 lakh crore.

NSE already has a wide and diverse base of shareholders- close to 1 lakh public shareholders- making it one of the largest Unlisted floats in Indian corporate history. With regulatory clarity improving and legacy issues being addressed, the path to listing now looks clearer than ever, said InCred Monday.

The valuation can fluctuate based on sentiment, company performance, or even regulatory announcements. While unlisted shares offer exciting opportunities, they also come with certain risks that investors should carefully consider before investing, it cautioned.