NSE’s Long Road to Listing: Why India’s Biggest IPO Is About More Than Valuation?
"NSE's Long Road Ends Here" — After years of setbacks, NSE finally clears its path to listing, but one last settlement still stands in the way.
India's largest stock exchange is finally moving towards a market debut. The National Stock Exchange (NSE) filed its Draft Red Herring Prospectus (DRHP) with SEBI and the BSE on June 18th, paving the way for a ₹30,000-crore IPO. If launched at this size, the issue could become the biggest IPO in India's history.
Most headlines stop right there. But one detail buried inside the DRHP deserves far more attention.
From 2016 Delays to 2026 DRHP Filing
NSE's long wait to go public may finally be coming to an end. Its 2016 listing plan was held back by the co-location and dark fibre cases, pushing back its market debut for nearly a decade. Since then, NSE has tightened its governance and compliance systems to address regulator concerns. The path cleared further when SEBI issued a "No Objection Certificate (NOC)" in January 2026.
To settle the remaining issues, NSE has proposed a ₹1,491.21 crore settlement with SEBI. While appeals related to the cases are still pending before the Supreme Court, the exchange appears determined to put the controversy behind it. But will this settlement close the case for good, or could the Supreme Court still have the final word before NSE finally goes public?
What's Really Driving NSE's Numbers?
NSE is not just India's biggest stock exchange; it is also a global leader. Today, it handles more than 51% of the world's equity derivatives contracts. Its revenue increased from ₹14,780 crore in FY24 to ₹16,601 crore in FY26. Most of this income came from transaction charges, which contributed nearly 79% of the revenue. Options trading alone accounted for more than 60% of the total revenue. This shows that NSE has a strong business, but it also depends heavily on one segment. As SEBI continues to introduce changes in derivatives trading rules, the key question is whether NSE can maintain this growth?
The Numbers Behind the Headline
- Issue size: nearly ₹30,000 crore
- Shares on offer: up to 148.9 million
- Stake on sale: close to 6% of equity
- Valuation: around ₹5 lakh crore
This puts NSE ahead of Hyundai Motor India's ₹27,858-crore IPO from 2024. That makes it India's biggest-ever public issue.
Who's Cashing In, and Who's Holding On?
State Bank of India (SBI) is leading the group of shareholders selling their stakes in the IPO, along with Bank of Baroda, GIC and a few insurance companies. However, LIC has decided to keep its stake in NSE. Investor Radhakishan Damani also remains invested in NSE. His holding in the exchange is valued at nearly ₹9,300 crore, making it his second-largest investment after Avenue Supermarts (DMart). The decision of major investors to hold on to their stakes reflects their confidence in NSE's long-term growth prospects.
A Huge IPO… But the Real Question Still Remains
A group of 20 banks, the biggest group ever formed for an Indian IPO, is now handling this large share sale. Big global and Indian names like Morgan Stanley, JP Morgan, and Kotak Mahindra Capital are part of the process. In a rare twist, NSE’s shares will be listed on its competitor, the Bombay Stock Exchange (BSE).
But beyond the size and headlines, one question still remains—this is not just India’s biggest IPO… it is also a test of whether the country’s most powerful stock exchange can finally close its old issues and start a new chapter as a public company.
And the real question is still open: when the listing day comes, will this be NSE’s biggest success story… or just the beginning of a bigger challenge?