NSE IPO: Is India's top exchange a must have in portfolio? Analysts answer

NSE IPO will open for bidding on September 17 and close on September 21, looking to raise ₹22,562 crore.

NSE IPO review: At over 40x P/E, the NSE IPO is anything but cheap. Yet brokerages are not walking away from it. Their argument is simple: Investors are paying a full price to get their hands on a market infrastructure with no real substitute. 

 

Its leadership position, strong brand positioning, and growing capital market ecosystem make analysts bullish on NSE for both long-term and likely listing gains. Furthermore, its peer BSE commands a steeper valuation of over 50x, on a business less than a third of NSE’s size, strengthening the investment case for the IPO. 

 

NSE reported revenue of ₹16,601 crore in FY26 compared to ₹17,141 crore in FY25, reflecting a decline of 3.1 per cent. Ebitda declined 11.1 per cent on a yearly basis to ₹11,265 crore, with Ebitda margin moderating to 67.9% from 73.9% in FY25. Net profit declined 12.2% year-on-year to ₹10,071 crore. Choice Broking said FY26 profit also looks worse than it really is, held

 

down by a settlement charge the company has now paid. 

Also Read | Valuation puzzle: What makes BSE pricier than IPO-ready NSE?

 

The exchange maintains a dominant position across key market segments with leadership in cash equities, equity futures and derivatives, supported by strong network effects from investors, brokers, institutions and listed companies.

 

 NSE IPO will open for bidding on September 17 and close on September 21. A pure offer for sale (OFS) of ₹22,562 crore, the IPO will see 10 shareholders offloading up to 12.64 crore shares. The price band for the NSE IPO is set at ₹1700-1785 per share. Investors can apply for the offer in lots of eight shares.  

 

The grey market premium (GMP) for NSE IPO is at ₹156 or 8.74 per cent, suggesting an estimated listing price of ₹1,941. 

 

NSE IPO Review

Here is what brokerages recommended on the NSE IPO:

 

Choice Broking | Subscribe

NSE IPO is priced at 47.3x TTM earnings. BSE, the only listed comparable, trades higher at 48.9x — on a business less than a third of NSE’s size, and on profits helped by the very options volumes NSE has lost, said Choice, adding that buyers are paying full price for the larger and stronger of the two, not a premium over it. "What that price buys is market infrastructure with no real substitute."

 

It said that the main concern is index options. "NSE has lost share since SEBI allowed each exchange only one weekly expiry day. That is a genuine setback in the fastest-growing part of the business. But it is one segment; the rest of the franchise is intact, and both revenue and profit grew again in Q1FY27. There is no other way to own Indian market infrastructure at this scale, and a first listing rarely comes cheap. Accordingly, we assign a rating of SUBSCRIBE," said the brokerage.

 

Swastika | Subscribe

Swastika said NSE trades at ~40.9x-42.9x FY26 diluted EPS versus peer BSE's 54.28x, leaving room for re-rating given NSE's larger scale. It flagged that ~79% of revenue is linked to trading volumes, making earnings sensitive to market activity and regulatory changes. Investors can subscribe for both long-term investing and Minor listing gains, supported by NSE's leadership and valuation advantage, it noted.

 

Ventura | Subscribe

With its leadership position, strong brand, technological capabilities and expanding capital-market ecosystem, NSE remains well positioned to capture the long-term growth opportunity in India’s financial markets, said Ventura.

 

It added that IPO will support growth initiatives, leveraging strong capabilities while managing government dependency and execution risks, therefore assigning a 'subscribe' tag.

 

Disclaimer: Views and outlook shared belong to the respective brokerages/analysts and are not endorsed by Business Standard. Readers' discretion is advised.