India’s NSE to hold $2.3 billion IPO amid decline in options trading
The National Stock Exchange of India (NSE) will launch a $2.3 billion initial public offering on September 16, 2026. Trading for anchor institutional investors will begin on Wednesday, while applications from other participants will be accepted from September 17 to 21. This is expected to become the third-largest IPO in India’s history.
As Channel NewsAsia reports, the offering will take the form of a sale of shares by existing private shareholders. No new shares will be issued, meaning NSE will not raise additional capital through the IPO.
Exchange valuation
The price range for NSE shares was set at 1,700–1,785 Indian rupees per share, or $17.72–18.60. According to exchange documents dated September 11, this values the company at $46 billion. Two Reuters sources familiar with the matter, speaking anonymously, said this valuation is 15–20% lower than the one discussed during pre-deal presentations and 40% below the level indicated by NSE share sales on the private market in 2024.
Investors are cautious about the exchange’s dependence on derivatives transactions. About 80% of NSE’s revenue comes from trading, with options accounting for 60% of that amount. Options trading volumes have fallen 27% from their 2024 peak. A source said regulatory changes have slowed the growth of options trading, while a review of trading rules is expected to bring the Indian market closer to global standards.
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Financial performance and investors
In the financial year ending in March 2026, NSE’s operating revenue declined by 3.1%, while profit fell by 15.5%. Bernstein analysts forecast that, due to regulatory measures targeting options trading, growth in Indian equity derivatives trading volumes will slow to about 5% in the financial year ending in March 2027.
According to two Reuters sources, several global institutional investors committed to participate in the offering at the lower price, including Abu Dhabi Investment Authority, Singapore’s GIC, Fidelity, Carmignac, Norges Bank Investment Management, and Life Insurance Corporation of India. GIC, Norges, ADIA, Carmignac, and Fidelity declined to comment to Reuters, while Life Insurance Corporation of India did not respond to the agency’s request.
NSE Chief Business Development Officer Shriram Krishnan said that some shareholders consider the exchange’s valuation to be higher than that proposed in the IPO. He also cited business diversification: over the past 15 months, NSE has launched electricity and natural gas futures, electronic gold receipts, and established a national coal exchange.
