NSE IPO Opens for Subscription, Valued at $46 Billion

NSE is positioned to gain from increasing retail participation in the capital markets. However, its earnings continue to depend substantially on transaction volumes.

NSE was incorporated in 1992 and runs a vertically integrated market infrastructure platform spanning trading. Clearing, listing, settlement, market data and index licensing.

The exchange maintained a dominant position across key segments in FY26. It accounted for nearly 93% of the cash market, 99.7% of equity futures and 68.5% of equity options premium turnover.

NSE's revenue increased at an annual rate of 6% over the preceding three years. However, declined 3% year-on-year to Rs 16,601 crore in FY26.

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The main reason was a 4% reduction in transaction-charge revenue. Which fell to Rs 13,057 crore as activity in the cash market, futures and options segments moderated following regulatory changes.

Investors are valuing India's largest stock exchange at nearly $46 billion. Or about Rs 4.42 lakh crore, at the upper price band of Rs 1,785.

NSE commands a higher P/E multiple than most major listed exchanges. This includes Nasdaq, CME Group, Intercontinental Exchange (ICE), LSEG, HKEX and SGX, according to analysts.

Transaction charges contributed nearly 79% of operating revenue in FY26, with options alone accounting for nearly 60%. This leaves earnings exposed to regulatory changes, competitive pressures and fluctuations in stock market activity.

The issue appears more suited to long-term investors who are comfortable taking on higher risk, according to an ET analysis.

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Brokerages have largely maintained a positive view of the issue. Analysts see the IPO as an opportunity for long-term investors to gain exposure to India's dominant market infrastructure company.

At the upper price band of Rs 1,785. NSE is valued at a post-issue P/E of 35.4x. Compared with BSE's P/E of 54.2x, making the issue attractive relative to its key listed peer Angel, One shared.

in a report.

"Despite near-term regulatory headwinds to derivatives volumes. We believe the valuation offers a favourable entry point given the company's strong competitive position and earnings potential. We recommend Subscribe for the IPO," Angel, One added.