NSE IPO journey moves ahead: Top 10 things investors should know from DRHP

The National Stock Exchange of India (NSE) is inching closer to a public listing, having filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for a long-awaited initial public offering (IPO), nearly a decade in the making.

 

The issue is estimated at around ₹30,000 crore, which could make it the largest IPO in India’s history, surpassing Hyundai Motor India’s nearly ₹28,000 crore issue in 2024, according to industry estimates. 

As investors await further developments, here are the key details taken from the exchange’s DRHP that investors should be aware of: 

NSE IPO Structure

 

The public issue is entirely an offer for sale (OFS) of 148,905,525 equity shares, representing nearly 6 per cent of NSE’s paid-up capital, with a face value of ₹1 each.

 

 

Shareholders participating in the OFS include State Bank of India, MS Strategic (Mauritius), Canada Pension Plan Investment Board, Aranda Investments (Mauritius) Pte Ltd, Bank of Baroda, Stock Holding Corporation of India, General Insurance Corporation of India, The New India Assurance Company, National Insurance Company, and United India Insurance Company. 

NSE IPO price band

 

NSE has not yet fixed the price band for the issue. “The price band and the minimum bid lot will be decided by our company in consultation with the BRLMs and will be advertised at least two working days prior to the bid/offer opening date,” the exchange said in its DRHP. 

 

NSE IPO listing

 

The equity shares, NSE said, are proposed to be listed on BSE Limited, which will be the designated stock exchange for the offer. 

NSE IPO utilisation of proceeds

 

Since the issue is entirely an OFS, NSE will not receive any proceeds from the IPO. “Our company will not receive the offer proceeds, and all the offer proceeds will be received by each of the selling shareholders after deduction of their respective portion of the offer-related expenses and the relevant taxes thereon,” said NSE in its DRHP. 

NSE IPO key strengths

 

According to the DRHP, NSE’s key strengths include its dominant market position in India and global leadership in cash equities and derivatives trading, supported by scale, diversified offerings, and strong profitability with low marginal costs. Structural drivers such as rising financialisation, growing investor participation, and digital adoption continue to support deeper liquidity. The exchange also highlights its strong brand trust and track record of innovation across products, platforms, and settlement systems. 

NSE IPO key risks

 

The DRHP flags risks including heavy dependence on trading volumes, particularly derivatives, making earnings sensitive to market cycles and regulatory changes. It also cites ongoing regulatory scrutiny and legal proceedings, along with technology and cybersecurity risks, including system disruptions and cyberattacks, given its role as critical market infrastructure. 

NSE IPO book running lead managers

 

The IPO will be managed by a large syndicate of book running lead managers, including Kotak Mahindra Capital Company, JM Financial, Morgan Stanley India Company, Citigroup Global Markets India, HSBC Securities and Capital Markets (India), J.P. Morgan India, SBI Capital Markets, Anand Rathi Advisors, Avendus Capital, Axis Capital, DAM Capital Advisors, Equirus Capital, HDFC Bank, ICICI Securities, IDBI Capital Markets & Securities, IIFL Capital Services, Motilal Oswal Investment Advisors, Nuvama Wealth Management, Pantomath Capital Advisors, and 360 ONE WAM. 

NSE IPO registrar

 

The exchange has said that MUFG Intime India Private Limited (formerly Link Intime India) will act as the registrar. 

About NSE

 

NSE began operations in November 1992 with the vision of integrating stock trading across India. It has been the largest stock exchange in India by total turnover in the cash equity and equity derivatives segments from FY2011 to FY2026, and in exchange-traded currency derivatives from FY2009 to FY2026, according to the Redseer Report.

 

Globally, it was the largest multi-asset class exchange by number of trades in cash equities and equity derivatives contracts in FY2026, with an 11.38 per cent share in cash equities trades and 51.18 per cent in equity derivatives contracts, as per the World Federation of Exchanges. 

NSE financial performance

 

NSE reported steady financial growth in the DRHP. Revenue from operations rose at a CAGR of 5.98 per cent from ₹14,780 crore in FY2024 to ₹16,601 crore in FY2026. Profit grew at a CAGR of 11.37 per cent from ₹8,306 crore to ₹10,302 crore over the same period, according to the DRHP.

 

Operating EBITDA margin stood at 66.78 per cent in FY2024 and 66.85 per cent in FY2026, while profit after tax margin improved from 47.13 per cent to 50.98 per cent. Dividend per equity share rose from ₹18 to ₹35, reflecting a CAGR of 39.44 per cent. Earnings per share increased from ₹33.56 to ₹41.62, while return on equity moderated from 37.37 per cent to 32.98 per cent over the period.