 "initial public offering, IPO")
Amidst rising buzz about an initial public offer (IPO), shares of the National Stock Exchange (NSE) have seen a surge in demand in the unlisted market, driving its valuation to record ₹5.8 trillion.
The valuation has surged by 25 per cent in just a week in the unlisted market. The rise comes amid new reports that the maiden share sale of the country’s largest bourse could soon become a reality. Market regulator Securities and Exchange Board of India’s (Sebi’s) move to limit derivatives expiry to just two days is also helping NSE arrest the market share decline.
Sebi’s circular issued on Monday has asked exchanges to submit their proposals before June 15. Currently, derivatives contracts of BSE expire on Tuesdays, while NSE's expire on Thursdays. NSE plans to shift the expiry of its derivatives contracts to Tuesdays. The move will require approval from Sebi.
Analysts said if approved, NSE could regain lost market share as Tuesday is seen as a more favourable day for expiry in terms of distribution of volumes.
The shares of NSE are currently trading at around ₹2,250 apiece. The total number of shareholders of the company has surged to over 100,000, according to industry sources. In comparison, the number of public shareholders at the end of March 2025 was only around 38,000.
"There has been a 5-time jump in the number of transactions in the scrip this month compared to that in March. The rise came following the regulatory changes that have made it faster and easier to deal in shares of the exchange," said a market player.
According to sources, the exchange has sought a settlement with Sebi in the long-pending “dark-fibre” case. The settlement offer is reportedly around ₹1,000 crore, as per a Bloomberg report. If approved, this would be the second major settlement by the exchange in the run-up to its IPO.
The dark-fibre case revolves around NSE allegedly providing preferential access to certain broking firms through "dark-fibre" connections, which allowed them to connect to the exchange's co-location facilities, granting them a competitive advantage.
NSE is awaiting a no-objection certificate (NOC) from the market regulator to move ahead with its Draft Red Herring Prospectus (DRHP).
"If both NSE and Sebi agree in principle on a settlement, then the market regulator may have to file a withdrawal of the case in the Supreme Court. Following this, the formal filing for consent with Sebi may have to be submitted. The NOC may be granted after going through all these layers," said a person familiar with the developments.
The recent surge in NSE shares came after the Sebi chairman's comment that the regulator is working to resolve the ongoing issues with the exchange. Earlier, Sebi had asked the exchange to address certain issues, including those related to governance, revenue sharing with clearing corporations, and pending legal matters.
In terms of the number of contracts traded, NSE is the largest derivatives exchange globally. The average daily volume in equity futures in the fourth quarter of financial year 2024-25 (Q4FY25) remained around ₹1.6 trillion while that in options was around ₹51,000 crore (premium value). Approximately 67 per cent of the exchange's revenue comes from transaction charges.
Sagility OFS fully subscribed
The offer for sale (OFS) of 703 million shares in Sagility India attracted bids for 697 million shares from institutional investors on Tuesday. EQT Private Capital Asia, the promoter of Sagility, aims to divest a 15 per cent stake through this share sale. An additional 70 million shares allocated for retail investors will be auctioned on Wednesday. The OFS floor price is set at ₹38 per share, while Sagility’s shares last closed at ₹40.72, after a 5 per cent decline. As of the March 2025 quarter, promoters held an 82.39 per cent stake in Sagility, a healthcare solutions provider.
