NSE IPO DRHP Filed: Raising Rs 30,000 Cr

TL;DR

• NSE filed its DRHP with SEBI on June 17, 2026, moving a step closer to its long-awaited IPO.

• The IPO is a 100% Offer for Sale (OFS) of up to 14.89 cr shares, with an estimated size of Rs 30,000 cr.

• Existing shareholders such as SBI, CPPIB, Bank of Baroda, and insurance companies will sell part of their holdings.

• LIC, NSE's largest shareholder, is not selling any shares in the IPO.

• In FY26, NSE reported Rs.18,713 cr total income, Rs.10,302 cr profit, and a Rs.8,663 crore dividend payout.

• The biggest details still awaited are the IPO price band, valuation, and launch dates.

Introduction

After nearly 10 years of delays, the NSE IPO drhp is been finally filed with SEBI on 17th June '26. Earlier the company appointed around 20 merchant bankers with legal advisors for the preparation of its IPO.

In this article, we break down the key highlights of the NSE IPO DRHP, financial performance, IPO structure, major selling shareholders, risks, and what investors should know before the much-awaited listing.

Key NSE IPO DRHP Details

Source: NSE IPO drhp 

What Does a 100% OFS Mean?

The NSE IPO drhp mentioned that its structure will be entirely 100% Offer for Sale (OFS), which means existing shareholders will sell a portion of their holdings to public investors. Hence, NSE will not receive any funds from IPO and proceeds from the IPO would go directly to the selling shareholders. 

Why Is NSE Not Raising Fresh Capital?

NSE Financials  (FY24-FY26)

In FY26, NSE has generated a total income of around Rs 18.713 cr, with a PAT of Rs 10.302 cr. The NSE could reflect a strong balance sheet with a net worth of Rs 31,870 cr.

Also, EPS stood at Rs 41.62 per share in FY26. Hence, NSE might not require additional capital for growth or operations, likely due to strong cash generation and a healthy balance sheet.

Will dividend payouts remain strong? 

*Adjusted for the 4:1 bonus issue.

While future dividends can never be guaranteed, NSE financials show that dividend payouts are likely to remain strong, subject to regulatory requirements, capital needs, and board approval. 

NSE paid Rs 8,663 cr in dividends in FY26, translating into an 84% payout ratio.

Over the last three years, NSE has generated cumulative profits of more than Rs 30,700 cr.

It is highlighting the strength and consistency of its earnings. The company's ability to generate over Rs 10,000 cr in annual profit while returning a significant portion of those earnings to shareholders through dividends. 

Who Are Participating In The OFS In The NSE IPO?

According to the NSE IPO drhp, SBI is the largest selling shareholder. Whereas Global institutions and insurance companies are partially monetising holdings. However, most sellers still retain exposure after the IPO. Majorly, LIC is not participating in the OFS. Its remaining the largest shareholder in NSE, could be showing long-term confidence.

What Makes NSE a Strong Investment Candidate? 

1. NSE is a market leader in Indian Capital Markets, maintaining 93% market share in the cash equity segment and continuing to lead the equity derivatives market.

2. It will likely be a beneficiary of India's Growing Capital Markets as an increase in trading activity across equities, derivatives, currencies, and commodities directly supports the exchange's revenue generation. 

3. NSE has diversified Revenue Streams with multiple businesses like equity trading, derivatives, commodity trading, clearing and settlement services, market data, index licensing, and technology infrastructure, helping to reduce dependency on a single business. 

Possible Risk Could Be Consider 

1. Regulatory Risk

As NSE is regulated by SEBI, any changes in regulations, particularly in the derivatives segment, could likely impact trading volumes and revenue growth.

2. Technology and Cybersecurity Risk

NSE processes millions of transactions every day. Any technology outage, system disruption, or cybersecurity incident could impact operations, reputation, and financial performance.

3. Competition Risk

Although NSE remains the market leader, it faces competition from BSE and other exchanges in various segments. Increased competition could affect market share and pricing power over time.

NSE IPO Allocation Structure

The NSE IPO reserves at least 35% of the net offer for retail investors, which is relatively favourable compared to many large IPOs. A larger retail allocation can improve allotment opportunities for individual investors and reflects the broad investor participation expected in the issue. 

NSE IPO Timeline

NSE first attempted to launch its IPO in 2016. However, the listing process was delayed for several years due to regulatory issues, primarily related to the co-location case. After settling its long-pending regulatory matters and receiving the necessary clearances, NSE revived its IPO plans. 

The company's Board of Directors approved the DRHP on June 15, 2026, following which NSE officially filed its Draft Red Herring Prospectus (DRHP) with SEBI on June 17, 2026. Hence, marking a major milestone in its long-awaited IPO

NSE User Base & Market Reach 

Every new investor who is entering Indian markets indirectly strengthens NSE's ecosystem. It signifies higher trading activity through more demat accounts, which could increase transaction fee revenue. 

NSE could benefit from a powerful network effect, traders, brokers, listed companies, mutual funds, ETFs, and institutions all operate on the platform.

India's equity investor base has grown rapidly from around 4 crore investors in 2020 to over 13 crore today, likely creating a long-term growth runway for NSE.
Also Read: NSE Unlisted Share: Is the Pre-IPO Window Closing Soon?