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On 6th Jan, the NSE board approved plans to launch its initial public offering (IPO), via OFS by existing shareholders. This is a major step taken by the governing board of NSE that was delayed nearly a decade.
Earlier on 30 Jan, the Securities and Exchange Board of India (SEBI) issued a no-objection certificate (NOC) for the NSE IPO.
NSE IPO Committee Reconstituted
Alongside approving the NSE IPO, the NSE board also cleared the reconstitution of its IPO Committee, which will oversee and facilitate the listing process. The formation of such a committee is mandatory for companies like NSE that do not have a promoter.
The committee will be chaired by Tablesh Pandey, a non-independent director and former managing director of LIC. Other members include public interest directors Srinivas Injeti, Mamata Biswal, Justice (Retd.) Abhilasha Kumari, G. Sivakumar and NSE’s managing director and CEO, Ashishkumar Chauhan.
The IPO committee will oversee the listing process, starting with finalising the criteria for appointing merchant bankers and legal advisors to prepare the draft red herring prospectus (DRHP).
NSE IPO Details
As communicated by NSE, the proposed IPO will be entirely an offer for sale (OFS) by existing shareholders. This means there will be no fresh issue of shares, and the exchange itself will not raise new capital through the IPO.
The IPO will involve the listing of NSE’s equity shares with a face value of Rs.1 each.
While the exchange has not disclosed the exact size of the issue yet, earlier indications suggest a stake sale of around 4.5%, making it one of the largest IPOs India has seen.
If we look at the current NSE unlisted market share of Rs. 2084 per share, the issue size could be around Rs. 23,000 crore.
NSE managing director and chief executive officer Ashish Kumar Chauhan has said the exchange prefers an OFS route, though a fresh issue may be considered only if the desired dilution cannot be achieved through existing shareholders.
Why the IPO Was Delayed for Years?
The NSE IPO news is important because the exchange listing plans have been stalled since 2016. The exchange had filed draft offer documents seeking to raise around Rs.10,000 crore through an OFS. However, the plans were put on hold after regulatory concerns emerged around governance lapses and the co-location controversy.
In this case, certain brokers were accused of receiving preferential access to NSE’s trading systems, giving them an unfair advantage between 2010 and 2014. Since then, NSE has approached SEBI multiple times seeking clearance to revive its IPO.
In recent years (2025), NSE has worked to resolve these issues, including filing a settlement plea and offering to pay Rs.1,388 crore to close the matter.
As a result, the recent no-objection certificate( NOC) from the Securities and Exchange Board of India (SEBI) gives a crucial breakthrough in NSE’s long-delayed IPO plans.
Why This IPO Approval Matters for Markets?
NSE IPO has been one of the most anticipated IPO in India. With regulatory clearance in place and a dedicated IPO committee formed, the NSE IPO has clearly moved from speculation to execution.
Market participants now expect the formal IPO process, such as appointing bankers and preparing offer documents, to begin soon.
Valued at over Rs. 5 lakh crore in the unlisted market and backed by a wide base of institutional and individual shareholders with about 1.77 lakhs, NSE’s eventual listing is expected to be among the largest IPOs in India’s capital markets.
For investors tracking NSE IPO news, this approval signals that the long wait may finally be nearing its end.
NSE Dec 25 Quarter Results Out: How Is NSE Performing?
After a financially volatile Q2, NSE released its Q3FY 25 audited financial statements showing recovery in margins and profitability, along with improved trading activity across its key business segments. Total income increased by 6% QoQ, while revenue from operations grew 7%. Quarterly EBITDA grew by 92%.
Read the detailed NSE Q3 FY26 Financial Analysis here.
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