NSE IPO: Unlisted shares hold firm despite STT hike in budget as issue timeline clears

Unlisted shares of National Stock Exchange of India (NSE) have been able to hold their ground in the pre-IPO market even as the Finance Minister Nirmala Sitharaman announced to increased securities transaction tax (STT) on future and options (F&O) segments in the Union Budget 2026-27.

According to the dealers active in the pre-IPO market, unlisted shares of NSE saw a minor correction after the government announced to increased the taxation in the derivative market, but the largest derivate exchange was able to withheld the hiccup as its IPO got the approval lately, ending the doubts on its timeline.

Sandip Ginodia, CEO of Kolkata-based Altius Investec believes that the STT announcement is sentimentally negative but such jitters are absorbed by markets as the instruments, volumes, number of traders are rising. "NSE is a financially sound company and we are expecting an IPO by mid of 2026," he added. Pre-IPO dealers are expecting NSE IPO price band around Rs 1,500-1,700.

According to the dealers, unlisted shares of NSE are currently trading in the range of Rs 1,950-2,050, commanding a market capitalization close to Rs 4.82-4.95 lakh crore. As of the current valuations, NSE is likely to dilute 5 per cent of its stake, resulting in issue size of Rs 24,000-24,500 crore. However, market participants are expecting NSE to raise around Rs 21,000-23,000 crore via IPO.

Echoing the tone similar to Ginodia, S Vasudevan, Executive Partner at Lakshmikumaran & Sridharan Attorneys said that increase in STT is not going to affect NSE’s books directly as it is neither NSE’s revenue or cost.  But, it will affect the quality of trades that are placed on the exchange.

"While the increase in STT might affect the number of small volume trades, the increased exposure would require higher quality trade, and accordingly, more revenue from data feed/ connectivity/ technology revenue. The increase in STT should be offset by the number of large volume trades, given the number of quality companies that are getting listed on the exchange," he adds.

On the other hand, InCred Money Team said that STT hike is expected to impact F&O volume, and is a major revenue contributor for NSE. NSEs unlisted price also saw a mild fall and its revenue profile may take a slight hit. "We expect it to go ahead with the IPO with the MD & CEO stating that NSE would likely get listed by the end of 2026."

Adding to his view, Hitesh Dharawat of Mumbai-based Dharawat Securities said that STT is a notional damper for NSE but one should wait for its results for the next two quarters. "Regulatory strictness and actions also does not bode well for NSE ahead of its much awaited IPO," he said.

Select media reports suggest that Temasek Holdings, Life Insurance Corporation of India, State Bank of India and SBI Capital Markets are also likely to offer stake in NSE's $2.5 billion IPO. NSE has nearly 1.9 lakh investors, making it the most widely owned unlisted company, and all investors will be given a chance to participate in the OFS.

As of December 31, 2025 LIC holds a 10.72 per cent stake in NSE and Temasek has about 4.5 per cent. SBI Capital also held nearly 4.3 per cent, while SBI owned 3.2 per cent stake in the company. NSE is set to announce its results for the quarter ended on December 31, 2025 on Friday, February 6, 2026.