NSE IPO Opens for Subscription to Raise Rs 22,562 Crore as Nirmal Bang Notes Attractive Discount to BSE

The initial public offering (IPO) of the National Stock Exchange of India (NSE) opened for public subscription on September 17, 2026. Marked as one of the largest public issues in Indian capital market history, the exchange seeks to raise up to Rs 22,562 crore at the upper end of its price band.

Domestic brokerage Nirmal Bang Institutional Research reviewed the offer, highlighting that the exchange is coming to the primary market at a balanced valuation, trading at a discount to its listed peer BSE Ltd.

Key Details of the NSE Public Issue

• Issue Window: The subscription window opened on Wednesday, September 17, 2026, and is scheduled to close on Monday, September 21, 2026.
• Price Band: The exchange has established a price band of Rs 1,700 to Rs 1,785 per equity share.
• Issue Structure: The offer is a 100% Offer for Sale (OFS) of up to 12.64 crore equity shares offloaded by existing shareholders, reduced from an earlier estimated 14.9 crore shares. NSE will not receive any fresh capital from the issue proceeds.
• Anchor Allocation: Prior to the issue opening, NSE mobilised Rs 6,746 crore from anchor investors, with domestic mutual funds leading the allocation and foreign portfolio investors (FPIs) securing Rs 2,883 crore, or approximately 43% of the anchor book.
• Grey Market Trend: In the unlisted market, shares were commanding a grey market premium (GMP) of around Rs 125 per share, indicating an estimated listing gain of nearly 7% over the upper band.

Nirmal Bang's Valuation View

At the upper price band of Rs 1,785 per share, the offer values NSE at 42.9 times FY26 earnings per share (EPS) and 13.8 times its March 2026 book value. On a fully normalised basis—stripping out one-off SEBI settlement charges as well as the exceptional gain booked on the National Securities Depository Limited (NSDL) stake sale—the price-to-earnings multiple stands steady at 42.7 times.

Nirmal Bang noted that while NSE earns a lower statutory return on net worth (RoNW) of 33.2% compared to BSE’s 45.0% and carries a higher concentration in equity options trading, these operational headwinds appear adequately factored into the pricing. At 42.9 times FY26 earnings, the offer sits at a noticeable discount to BSE’s valuation multiple of 54.6 times, providing a reasonable entry point for investors seeking long-term exposure to the country's market infrastructure leader.

Dividend Track Record and Key Risks

The exchange has maintained strong shareholder distributions, delivering an 84% payout ratio. The total dividend for FY26 stood at Rs 35 per share—consisting of a Rs 25 ordinary dividend and a Rs 10 special dividend—matching the total payout of FY25, where ordinary dividend was Rs 23.54 alongside an Rs 11.46 special dividend.

Key Investment Risks Highlighted by the Brokerage:

• Regulatory tightening by the Securities and Exchange Board of India (SEBI) on index derivatives and retail options turnover.
• Potential market share erosion in the equity derivatives segment as competition intensifies.
• Outstanding regulatory investigations or settlement payments that could impact operational costs.

Tags: National Stock Exchange BSE SEBI Nirmal Bang Capital Markets Initial Public Offering