NSE unlisted share hold firm as IPO preps intensify; valuations near Rs 5 lakh crore

NSE unlisted share price: Despite the selloff in the broader markets, unlisted shares of National Stock Exchange of India (NSE) have been able to hold their ground in the pre-IPO market as the leading exchange announced appointment of 20 merchant banks and 8 law firms to support its much-awaited initial public offering (IPO) on Thursday.

According to the dealers, unlisted shares of NSE are trading around Rs 1,900-2,000, implying a market capitalization of Rs 4.70 lakh crore to Rs 4.95 crore as of both the ends. However, the leading exchange is yet to file its draft herring red prospectus (DRHP) with the bourses, but market participants are expecting NSE to raise Rs 23,000-25,000 crore from its maiden share sale.

Prices of NSE have increased nearly a per cent after the recent announcement of merchant bankers and the stock is hovering around the Rs 1,980-2,010 range, said Vijay Kuppa, CEO, InCred Money. “It’s expected that NSE will continue to be in the spotlight for the next few months considering it may be the biggest IPO of 2026.”

NSE has appointed Kotak Mahindra Capital, JM Financial, Axis Capital, IIFL Capital Services, Motilal Oswal Investment Advisors, ICICI Securities, SBI Capital Markets, Nuvama Wealth Management, HDFC Bank, Avendus Capital, Morgan Stanley India, Citigroup Global Markets India, JP Morgan India, HSBC Securities and Capital Markets (India), IDBI Capital Markets, 360 ONE WAM, Anand Rathi Advisors , DAM Capital Advisors, Pantomath Capital Advisors and Equirus Capital as its managers for the issue.

The exchange has also pick eight law firm, namely- Cyril Amarchand Mangaldas, Khaitan & Co, Latham & Watkins LLP, Sidley Austin Singapore, AZB & Partners, S&R Associates, Shardul Amarchand Mangaldas & Co, and Trilegal- for its upcoming IPO.

Sandip Ginodia, CEO of Kolkata-based Altius Investech, a pre-IPO shares dealer, said that IPO is the biggest positive for NSE but factors including regulatory strictness on F&O, jittered market sentiments, tightened liquidity, FIIs exodus, competition from BSE and impact of STT hike are not leaving rooms for a major spike in the unlisted space.

“Its earnings in future will be supported by addition of investor protection fund (IPF) to its balance sheet, lifting its topline and bottomline,” added Ginodia, expecting price band for NSE’s IPO around Rs 1,400-1,500, leaving some value for investors on table.

NSE is the most widely owned unlisted stock with nearly 1.95 lakh investors. The IPO of NSE is said to be entirely an offer-for-sale, allowing complete or partial exit to existing investors, including LIC and Temasek. In order to clearance of regulatory roadblock, NSE had received a no-objection certificate (NOC) from capital markets regulator Sebi earlier in January.

The involvement of a large consortium of domestic and global investment banks signals that NSE is gearing up for a complex and closely watched public listing. With this decision and progress towards the NSE IPO, the share price may see sharper price discovery and increased investor participation, said Krishna Patwari, Founder and Managing Director at Wealth Wisdom India.

“The next few months will be crucial and decisive. Over the next 3–4 months, with the DRHP expected to be prepared, key regulatory approvals secured, and valuation discussions progressing, investors will have greater clarity on the structure and timeline of the IPO,” he said, adding that NSE’s smooth and timely listing shall develop and create liquidity in the overall market.

NSE reported a sharp 37 per cent year-on-year fall in consolidated net profit to Rs 2,408 crore for the third quarter due to  provisions worth Rs 1,307 crore for one-time settlement in co-location and volumes hit due to regulatory clampdown. Ebitda came in at Rs 2,851 crore, while margins improved to 73 per cent for the quarter.