NSE investor base rises 4 times amid IPO hopes and market anticipation

Exchange's public shareholder numbers surged to 157,000 in Jun

Anticipation of a long-awaited initial public offering (IPO) is driving a remarkable influx of retail investors into the National Stock Exchange (NSE). The exchange's public shareholder base has ballooned to 157,000 as of June, a dramatic four-fold increase since the end of March 2025. 

Retail investors, defined as individuals holding nominal share capital of up to ₹2 lakh, are leading this charge. Their number skyrocketed from approximately 34,000 in March to 146,000 by June, boosting their collective stake in the country's largest exchange from 9.89 per cent to 11.81 per cent. 

This surge also follows a significant operational change: the activation of NSE's International Securities Identification Number (ISIN) on March 24. This unique global code has streamlined the share-transfer process, slashing transaction times from months to just days.

 

 

Market participants confirm shares are now freely transferable, with robust volumes from both buyers and sellers.

 

"The pre-ISIN era involved cumbersome document compliance, limiting transactions," explained Abhay Doshi, cofounder of UnlistedArena. "Since the stock was effectively ‘defrosted’, we've seen robust investor demand, significantly expanding the shareholder base. Growing clarity and progress on the IPO have further fuelled this positive sentiment," Doshi added. 

 

The heightened demand has propelled NSE's unlisted share price to ₹2,225 apiece, valuing the exchange at approximately ₹5.5 trillion. This marks a substantial rise from around ₹1,600 at the start of the current financial year (FY26).

 

"The rise underscores growing retail confidence in the exchange as a wealth creation opportunity," noted Uday Tardalkar, economist and market expert. "We're also seeing stake dilution from some long-term HNI holders," he added.

 

While retail ownership surged, the stake held by individual public shareholders owning over ₹2 lakh share capital dipped slightly to 9.52 per cent (from 9.64 per cent). Foreign ownership also declined by nearly one percentage point since March.

 

IPO hopes have intensified following indications that the NSE is nearing a ₹1,388 crore settlement with the Securities and Exchange Board of India (Sebi) regarding long-pending colocation and dark fibre cases. Sources suggest Sebi could grant the crucial no-objection certificate (NOC) to the exchange for filing the Draft Red Herring Prospectus (DRHP) within the next two months.

 

"Strong investor demand for ownership creates a compelling case for listing," stated Mrugank Paranjape, chairman of the IMC Task Force on Capital Markets and managing partner at MCQube. "Listing will enable better public price discovery, addressing the current lack of clarity on valuation," Paranjape added.

 

Among NSE’s top shareholders are Life Insurance Corporation (LIC), SBI Capital Markets, Aranda Investments (Mauritius), State Bank of India, Canada Pension Plan Investment Board, and prominent investor Radhakishan Damani.