NSE Valuation Hits $58 Billion Ahead of IPO Plans
The National Stock Exchange (NSE) of India has seen its valuation soar to $58 billion in the private unlisted market, marking a staggering 60% increase compared to last year. The jump comes as expectations grow around the exchange’s long-awaited initial public offering (IPO), which could materialize as early as late 2025.
Unlisted shares of NSE are currently being traded at around ₹2,000 per share, with growing demand from high-net-worth individuals (HNIs) and institutional investors. Brokers report an unusually high buying appetite, leading in some cases to refunding of investor funds due to share unavailability, highlighting the frenzy surrounding NSE’s pre-IPO buzz.
Strong Investor Demand, Limited Supply
Demand for NSE’s unlisted equity has outstripped available supply, with traders struggling to meet requests from interested buyers. Market intermediaries claim that inquiries from both domestic and overseas investors have increased substantially, pushing the share prices higher and boosting NSE’s perceived market worth.
NSE’s valuation spike now places it ahead of Nasdaq Inc. and closing in on Deutsche Boerse AG’s market value of $62 billion. Analysts attribute this growth to NSE’s strong fundamentals, expansive trading ecosystem, and consistently rising profitability metrics.
Regulatory Clearance and Strategic Moves
Despite its stellar financials, NSE’s IPO journey has faced delays due to regulatory and legal hurdles. Key among them has been a prolonged dispute with the Securities and Exchange Board of India (SEBI). However, recent developments indicate progress in resolving these roadblocks, with market expectations leaning toward a green light in the coming months.
In a strategic move aimed at strengthening its equity derivatives market share, NSE is planning to shift the expiry of derivatives contracts from Thursdays to Tuesdays. This adjustment is intended to undercut rival BSE’s volume growth and reassert NSE’s dominance in the segment.
Financial Performance and Shareholding Profile
NSE’s financial health remains robust. For the fiscal year ending March 2025, the exchange reported a consolidated net profit of ₹12,188 crore—a 47% rise from the previous year. Revenue figures and operational efficiency continue to surpass benchmarks among global peers.
Major stakeholders in NSE include public sector giants and international investors. LIC holds a 10.7% stake, while SBI owns 3.23%. Other notable shareholders include the Canada Pension Plan Investment Board and GIC of Singapore, indicating global confidence in NSE’s business model.
Global Ranking and Market Outlook
With its valuation now approaching that of European market leader Deutsche Boerse, the NSE is well-positioned to become one of the most valuable stock exchanges globally. If the IPO proceeds as anticipated, it will likely be among the biggest listings in India’s financial history.
The market is watching closely for further signals from regulatory authorities. Analysts predict that once listed, NSE will not only boost liquidity in India’s capital markets but also open new doors for public participation and international capital inflows into the Indian economy.
