National Stock Exchange of India (NSE) is India's largest stock exchange across cash markets (93.05% market share in Q1FY27), equity derivatives (99.72% market share in equity futures), and currency derivatives (100%). Incorporated in November 1992, NSE operates as a vertically integrated, technology-driven platform providing listing, trading, clearing, and post-trade services. Compared to stock exchange groups globally, NSE is the largest multi-asset class exchange in terms of number of trades in cash equities (market share 11.38%) and contracts traded in equity derivatives (market share 51.18%) in FY2026.

NSE offers a diversified range of products across multiple asset classes, including cash market, futures, options, mutual funds platform, commodity derivatives, exchange-traded currency derivatives, wholesale debt market and interest rate futures, among others. Proprietary technology underpins its operations, ensuring high-speed transactions and efficient market functionality.

Since its inception, NSE has played a crucial role in reshaping India's capital markets through a technology-driven ecosystem. NSE has 261.36 million registered investor accounts, 1,328 trading members, 132.37 million Unique Registered Investors and 3,005 Listed Entities with a Market Capitalisation of Listed Entities of Rs 474.08 trillion. NSE has enabled Rs 20.33 trillion in total fund mobilization in FY2026.

NSE has continuously innovated, introducing new products to accommodate evolving needs. By maintaining leading market shares across key asset classes, NSE ensures capital efficiency, lower funding costs, and improved liquidity for participants.

NSE has established key market institutions to create a holistic ecosystem and serve as a one-stop platform. Its non-trading businesses provide complementary revenue sources and serve market participants' diverse needs. NSE Clearing, established in August 1995, is India's largest clearing corporation, achieving significant market shares in different sectors. Transitioning from a T+5 to a T+1 settlement cycle reflects its commitment to modernization and efficiency. NCL has consistently been rated AAA and maintained a Core Settlement Guarantee Fund of Rs 13392.31 crore.

NSE Indices, launched in 1998, offers various indices, including the hallmark Nifty 50, which underpins a significant percentage of India's passive funds and ETFs. NSE Data and Analytics Limited, established in June 2000, provides vital data services, enhancing market offerings through real-time data and analytical tools catered to various stakeholders, strengthening its comprehensive financial ecosystem while supporting informed trading and investment decisions.

NSE International Exchange (NSEIX), established in November 2016 in India's GIFT City, enables trading in foreign currency-denominated securities and international markets for approximately 21 hours daily with market share of over 99%. Additionally, complementary services include mutual fund registry, depository services, and support for commodities and corporate governance.

The Offer and the Objects

The initial public offer (IPO) consists entirely of offer for sales (OFS) of 12.64 crore equity shares to raise Rs 21486-22562 crore with price band of Rs 1700-1785 per equity share of face of Rs 1. The company does not have any identifiable promoter.

Among the selling shareholding State Bank of India is selling 1.60 crore equity shares, Canada Pension Plan Investment Board 1.19 crore equity shares, Aranda Investments (Mauritius) Pte 1.12 crore equity shares, MS Strategic (Mauritius) 1.10 crore equity shares, The New India Assurance Company 1.05 crore equity shares, SBI Capital Markets 0.88 crore equity shares, Bank of Baroda 0.77 crore equity shares, Stock Holding Corporation of India 0.62 crore equity shares, General Insurance Corporation of India 0.62 crore equity shares, United India Insurance Company 0.60 crore equity shares, Crown Capital 0.59 crore equity shares, 2726247 Ontario Inc. 0.54 crore equity shares, The Oriental Insurance Company 0.50 crore equity shares, National Insurance Company 0.40 crore equity shares, Mahagony 0.30 crore equity shares etc.

The issue is to be made through the book-building process and will open on 17 September 2026 and will close on 21 September 2026. The shares worth Rs 70 crore have been reserved for employees with discount of Rs 170 per equity share.

Strengths

NSE is the largest stock exchange in India in terms of total turnover in cash market, equity derivatives and exchange-traded currency derivatives. Globally, it's the largest multi-asset class exchange in terms of number of trades in cash equities and contracts traded in equity derivatives in FY2026. NSE is the largest derivatives exchange in the world by number of contracts traded for seven consecutive years.

NSE plays a crucial role in capital formation and listing of companies, with platforms for Mainboard and SME listings, including the Social Stock Exchange.

Over last 30 years, market capitalization of listed entities on NSE grew by nearly 107 times.

NSE provides a robust, high-speed, technology-led platform across equities, debt, commodities, currencies and their derivatives, and ETFs. Systems are designed for scale, resilience and transparency, enabling efficient transactions while ensuring regulatory compliance.

NSE's MF Invest platform facilitates seamless mutual fund transactions.

In the debt market, NSE offers a Request for Quote platform and integrated systems for corporate bond reporting and funding.

NSE is among the top two exchange groups globally in terms of number of new listings through IPO in FY2026.

Listing services cover equities, equity convertible securities, debt instruments, REITs and InvITs, offering issuers access to capital markets.

India is the fourth largest equity market globally after US, China (including Hong Kong), and Japan. NSE is well positioned to benefit from the continued evolution of Indian and global capital markets.

NSE provides data feed services, distributing real-time and proprietary market information to global data vendors and financial institutions.

Robust cybersecurity and risk management aligned with global standards maintain system confidentiality, integrity, and availability. Significant expenditure on IT infrastructure reflects a commitment to technology

Marginal cost of adding new products is low due to scale. Technology infrastructure has enabled launching products at lower transaction charges to benefit investors.

Scalable and asset-light model enables efficient reinvestment, while cost structure and market position allow to offer competitive pricing, reinforcing customer loyalty.

NSE's data and indices licensing revenue, which are recurring kind of revenues, currently accounts for 10-12% of revenue. There is significant room for NSE to scale these revenue segments with global exchanges generating 40-50% of revenue from recurring streams.

The number of unique stock market investors in India stood at over 139 million as of March 2026 implying an investor penetration basis adult population (aged 18+) of 13.45%. this indicates significant untapped potential compared with penetration of 60% for US and 30-50% for other developed markets.

Monthly domestic systematic investment plan (SIP) inflows generate institutional demand that supports continuous primary and secondary market turnover.

The financialization of savings has driven a significant increase in participants on NSE platform. Higher trading volumes, enhanced market efficiency and liquidity, makes platform more attractive and improving trust and stickiness.

Weaknesses

Transaction fees (79% of revenues), specifically from equity options (60%), form the bulk of total revenue, creating high business sensitivity to trading volume drops and regulatory policy changes. Transaction volumes are influenced by macroeconomic conditions.

Top 10 trading members contributed 46.78% of revenues in FY26. Disruptions or an inability to board new members may adversely affect operations.

Government policies and SEBI's enhanced regulations on derivatives affect options and futures volumes.

NSE's Options market share by premium turnover has dropped significantly from 96.86% in FY2024 to 74.71% in FY2026, and 68.48% for Q1FY2027.

The Closing Auction Session (CAS) introduced in the equity cash segment effective 3 August 2026 has significantly impacted closing and expiry volume.

NSE is currently facing, and have historically faced, enforcement actions and monetary penalties from the SEBI due to alleged violations of regulatory norms.

Disruptions, failures, or inadequacies in IT infrastructure, systems, or software, including third-party providers, can negatively impact business, while potentially triggering regulatory actions from SEBI.

The businesses handle sensitive information, making it vulnerable to internal and external security breaches, as well as non-compliance with privacy laws,

The NSE brand's strength is crucial for attracting issuers, trading members, and investors while maintaining growth.

Interoperability among clearing corporations may lead to reduced clearing volumes, market share loss, margin compression, and elevated operational risks, negatively impacting business.

SEBI requires specific corpus contributions from stock exchanges and clearing corporations. Significant contributions to the Investor Protection Fund Trust (IPFT) and Settlement Guarantee Fund (Core SGF) may adversely affect profitability.

A shift towards alternative investments like real estate, fixed deposits, or cryptocurrencies could negatively affect demand for the platform. Government policies impacting capital markets, including commodity trading restrictions and taxation increases, can limit trading activity.

Valuation

NSE's revenue grew at a CAGR of 6% from Rs 14780 crore in FY2024 to Rs 16601 crore in FY2026. Net profit from continuing operations grew at a CAGR of 10% to Rs 10180 crore in FY2026. Revenue increased 13% to Rs 4560 crore and profits improved 11% to Rs 3122 crore in Q1FY27. Operating Margin was 68.26% in FY2026 and 78.32% in Q1FY27. Return on Equity was 32.98% in FY2026 and 37.04% annualized for Q1FY27.

The EPS on post-issue equity for TTM ended June 2026 works out to Rs 39.0. At the price band of Rs 1700 to Rs 1785, P/E works out to 43.6-45.8 times. Post IPO M-cap is Rs 441788 crore at upper price band.

Listed peer BSE trades at 48.8 times EPS for TTM ended June 2026, which has been enjoying scarcity premium being only listed stock exchange. Major global stock exchanges such as NASDAQ, ICE and Hong Kong Exchanges and Clearing are trading at PE of 22-27 times.

NSE is clear leader dominating trading volume. NSE is multiple times larger in terms of revenues as well as profitability compared with BSE. NSE has also recorded better operating profit margin at 68.3% for FY2026 compared with BSE at 63.69%. However, BSE has recorded robust 59% CAGR revenue growth from Rs 1371 crore in FY24 to Rs 4834 crore in FY26. PAT also surged at CAGR of 49% to Rs 2497 crore in FY2026. For Q1FY27, BSE revenue increased 64% to Rs 1566 crore PAT jumped 62% to Rs 874.02 crore.

National Stock Exchange of India: Issue highlights
For Fresh Issue Offer size (in share crore)
- On lower price band	0.00
- On upper price band	0.00
Offer size (in Rs crore)	0.00
For Offer for Sale Offer size (in Rs crore)
- On lower price band	21486.45
- On upper price band	22561.57
Offer size (in no of shares crore)	12.64
Price band (Rs)	1700-1785
Minimum Bid Lot (in no. of shares)	8
Post issue capital (Rs crore)
- On lower price band	247.50
- On upper price band	247.50
Post-issue promoter & Group shareholding (%)	-
Issue open date	17-09-2026
Issue closed date	21-09-2026
Listing	BSE
Rating	46/100

National Stock Exchange of India: Financials
	2403 (12)	2503 (12)	2603 (12)	2506 (03)	2606 (03)
Income from Operations	14780.01	17140.68	16601.31	4032.24	4560.41
OPM (%)	67.46	74.53	68.26	78.37	78.32
OP	9970.35	12775.74	11332.53	3159.92	3571.68
Other Income	1572.05	2036.15	2112.06	766.21	691.76
PBDIT	11542.40	14811.89	13444.59	3926.13	4263.45
Interest (Net)	0.00	0.00	0.00	0.00	0.00
PBDT	11542.40	14811.89	13444.59	3926.13	4263.45
Depreciation / Amortization	439.55	546.59	623.51	150.14	162.55
PBT	11102.85	14265.31	12821.08	3775.99	4100.89
Share of Profit/(Loss) from Associates/JV	0.00	0.00	0.00	0.00	0.00
PBT before EO	11102.85	14265.31	12821.08	3775.99	4100.89
EO	81.44	1209.47	1074.50	0.00	68.59
PBT after EO	11184.28	15474.78	13895.58	3775.99	4169.48
Tax Expenses	2777.80	3869.03	3716.05	964.18	1047.60
PAT	8406.48	11605.75	10179.53	2811.81	3121.88
Minority Interest	0.08	-0.25	0.00	0.00	0.00
Net Profit	8406.40	11606.00	10179.53	2811.81	3121.88
Profit from discontinued operations	-100.74	581.94	122.53	112.04	-1.80
Net Profit after profit from discontinued operations	8305.66	12187.94	10302.06	2923.85	3120.08
EPS *	33.7	43.2	37.9	45.4	49.6
Adj BV (Rs)	96.9	122.6	129.8	134.7	142.4
*EPS annualised on post issue equity capital of Rs 247.5 crore excluding EO and relevant tax, face value of Rs 1 each, Figures in Rs crore Source: National Stock Exchange of India Issue Prospectus

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