India's financial markets are buzzing with anticipation as the long-awaited initial public offering (IPO) of the National Stock Exchange (NSE) appears closer than ever. The market regulator's top official has indicated that the crucial green light could arrive within weeks, potentially setting the stage for one of the country's largest-ever share sales.
Regulatory Nod Imminent After Long Wait
Securities and Exchange Board of India (Sebi) Chairman, Tuhin Kanta Pandey, stated at a market convention in Chennai that the no-objection certificate (NoC) for NSE's IPO is likely to be granted by the end of January 2026. This certificate is a mandatory prerequisite for any market infrastructure institution seeking a listing. The approval has been pending since March last year when Sebi allowed the exchange to speed up the process of share transfers between investors, a move that had initially raised hopes of a swift listing.
Once the NoC is secured, NSE will need to prepare its draft red herring prospectus (DRHP), the formal offer document, and submit it to Sebi for final approval. Market sources suggest that if the clearance comes by month-end, the shares of the premier bourse could see a listing as early as August or September this year.
Unlisted Market Springs Back to Life
The Sebi chief's comments have immediately reignited activity in the unofficial market for NSE's unlisted shares. The price, which had soared to between ₹2,375 and ₹2,400 per share by June 2025 from around ₹1,550 at the end of March, had later cooled off. It lingered in the range of ₹1,875 to ₹1,950 until the recent announcement.
Following the news, the price in the unlisted space jumped to approximately ₹2,050 per share. "The price currently stands at around ₹2,050 per share," confirmed Narinder Wadhwa, founder of SKI Capital Services. He added that trading activity is expected to increase with the NoC on the horizon.
Ashish Nanda of Kotak Securities noted that the unlisted market, which had been quiet for many months, is likely to see a revival. He also pointed out a potential "rub-off effect" on other capital market-related themes in the unlisted space, such as other exchanges like NCDEX and MSEI, which are also preparing to launch equity segments.
Path to a Landmark Listing
The NSE IPO, pending for nearly nine years due to regulatory investigations into past governance issues, is poised to be a blockbuster. The offering could target a staggering valuation of around ₹7 trillion, a significant premium to its current implied market capitalization of ₹5.07 trillion. This makes NSE, which is five times the size of its rival BSE, a behemoth in the making for public markets.
An investment banker involved in the process indicated that formal presentations are being geared up for February, after which filing the draft document should not take more than two months. Post NoC, the exchange will appoint merchant bankers and lawyers to finalize the offer documents before seeking board and regulatory approvals.
Retail investor interest in NSE is already evident. Their shareholding in the bourse increased to 12.12% in the third quarter of FY26, up from 9.89% in Q4 FY25. This growth came partly at the expense of foreign and corporate investors. As the IPO process gains visibility, this retail participation is expected to intensify, making the NSE listing a historic event closely monitored by all segments of the investment community.
