NSE

NSE

By Geetanjali Kedia
about 13 hours ago

IPO Size: Rs. 22,569 cr, entirely Offer for sale (OFS)

  • By 10 investors including SBI, Cananda Pension Plan, Aranda Investments, New India Assurance, Bank of Baroda, General Insurance Corp, United India Insurance

Price band: Rs. 1,700-1,785 per share

M cap: Rs. 4.42 lakh cr (IPO is 5.1% of m cap)

IPO Date: Thu 17th Sep to Mon 21st Sep 2026, Listing (only on BSE) Thu 24th Sep 2026

Grey Market Premium (GMP): We are strongly against ‘grey market premium’ as it is an unofficial figure, against SEBI guidelines.

 

India’s Largest Stock Exchange

National Stock Exchange of India Limited (NSE), established in 1992, is India’s largest stock exchange, in a duopoly market, based on cash market and equity derivatives turnover since FY 2001. It is also the largest for exchange-traded currency derivatives.

Catering to 132 million investors, NSE enjoys a market share of 93.1% in cash market, 99.7% in equity futures and 68.5% in equity options, based on respective market segment turnover.

 

Losing Share in the Most Profitable Segment

While cash market and equity futures share has been maintained, NSE’s market share in equity options has been falling steadily, from 97% in FY24 to 68% in Q1FY27. This is a significant drop within a period of just 27 months.

And it hurts the most as transaction charges of the options segment is the most lucrative piece of business, accounting for 53% company’s total income of Rs. 18,713 cr. Balance is split as 16% investment income, 10% cash market transaction charges, 8% futures transaction charges, and remaining from data connectivity, data feed and terminal services etc.

 

Where is the Growth?

FY26 total income declined 2% YoY to Rs. 18,713 cr, with a sharper drop in profit after tax (PAT) of 12% YoY to Rs. 10,180 cr. Options segment revenue fell 2% YoY in FY26 to Rs. 9,998 cr, on total income of Rs. 18,713 cr. 

In Q1FY27, NSE’s revenue from options market dropped 1% YoY to Rs. 2,744 cr, despite average daily trading volume on options premium moderately rising, although total revenue rose 9% YoY to Rs. 5,2,52 cr.

While NSE’s Q1FY27 PAT rose by 11% YoY to Rs. 3,122 cr, smaller peer BSE’s Q1FY27 PAT jumped 66% YoY, albeit on a lower base, to Rs.873 cr. BSE’s ~30% market share in equity options in less than 3 years and other initiatives like Star MF platform, SME IPO etc. highlight the perils of a leader becoming complacent.

 

Corporate MisGovernance Track Record

NSE paid Rs. 643 cr to SEBI towards settlement amount for case involving Trading Access Point Architecture and Network Connectivity and another whopping Rs. 1,491 cr as settlement of Co-Location and Dark Fibre cases. If one were to brush these off as a legacy issues, on 30th Apr 2025, US based market maker Jane Street’s investigation for unusual activity in derivatives segment was quietly closed by NSE, stating there was no deliberate market manipulation. Weeks later, on 3rd Jul 2025, SEBI barred Jane Street from Indian market for alleged index options manipulation and imposed the highest-ever disgorgement amount in its history of Rs. 4,843 cr on Jane Street. Country’s largest stock exchange giving clean chit to a market participant who was later fined the highest amount by the capital market regulator does not speak highly of the former! So along with market share degrading, there exists governance concerns too!

 

Unattractive Pricing

M cap of Rs. 4,41,788 cr implies a PE multiple of 35x, based on FY27E estimated EPS of Rs. 50. This is slightly lower than BSE’s PE of 37.5x, but this discount is for a valid reason.

BSE profits have been on a steady rise – Q1FY27 PAT of Rs. 873 cr exceeds annual FY24 PAT of Rs. 772 cr, implying a 65% profit CAGR. As against this, NSE’s profit rose at 14% CAGR from Rs. 8,406 cr in FY24 to Rs. 3,122 cr in Q1FY27. While NSE offers scale, BSE offers growth. And investors always chase growth.

 

Sole Listing on BSE

NSE’s listing will increase trading volume on BSE, as NSE will be solely listed on BSE. While financial implications are limited for BSE’s cash market volumes, once F&O is introduced on NSE stock, sometime in the future, it is likely to keep focus on BSE’s daily volume data and earnings.

 

Are Mega IPOs Unrewarding for Investors in India?

NSE IPO is slated to become India’s 2nd largest IPO even, after Hyundai. Barring the much-anticipation, India’s largest IPOs in terms of fund raised, have seldom rewarded investors on listing day.

  • Hyundai Motors, which raised Rs 27,870 cr in Oct 2024, was listed marginally below IPO price of Rs. 1,960
  • LIC’s Rs. 20,557 cr IPO in April 2022 also saw muted debut, share listing at a 8% discount to IPO price of Rs. 949
  • Last year, Tata Capital’s Rs. 15,512 cr IPO in Oct 2025 witnessed a flat listing
  • One97 Communications also listed at 10% discount after raising Rs.18,300 cr in Nov 2021. 

Barring LG Electronics, which priced its Rs.11,607 cr IPO generously (probably a learning from Korean counterpart Hyundai) in Oct 2025, and listed at 50% premium, most mega IPOs have been a dampener for investors. Can NSE break the trend?