National Stock Exchange of India Gets Approval for IPO via OFS

The National Stock Exchange of India (NSE) has officially been given the green light to proceed with its Initial Public Offering (IPO) through an Offer for Sale (OFS). This decision arrives after a prolonged wait of nearly ten years and follows the Securities and Exchange Board of India's (SEBI) issuance of a no-objection certificate, making the IPO a prominent occurrence in India’s capital markets.

Following SEBI's endorsement, the NSE’s board has been tasked with constituting a restructured IPO Committee. This committee is expected to oversee strategic preparations for the forthcoming listing process. As per reports from the Economic Times, this development signals an important milestone for the country's largest stock exchange, given that its IPO plans have faced numerous regulatory hurdles since 2016.

Previously, NSE attempted to initiate its IPO aiming to raise around ₹10,000 crore. However, this was met with delays primarily due to regulatory concerns linked to governance and the co-location controversy, where certain brokers allegedly gained preferential access to trading services, raising questions about fairness and transparency in market operations.

As reported by market sources, this newly formed IPO Committee will be responsible for defining the listing protocols and establishing criteria for the selection of merchant bankers and legal advisors who will draft the necessary documentation, including the Draft Red Herring Prospectus (DRHP).

The path to approval has been fraught with challenges. Notably, NSE faced significant setbacks related to its co-location arrangements which had resulted in investigations and litigation. Last year, the exchange proposed a substantial settlement amount to clear regulatory concerns, ultimately reaching ₹1,388 crore to advance its listing ambitions.

Analysts have indicated that the upcoming IPO could rank among the largest in Indian capital markets, with current estimates valuing the exchange at over ₹5 lakh crore in the grey market. The NSE boasts approximately 1.77 lakh shareholders, reflecting a robust investor interest leading up to the IPO.

NSE Managing Director and Chief Executive Ashish Kumar Chauhan expressed optimism regarding the issuance of the no-objection certificate, suggesting it could facilitate the filing of the draft prospectus soon. He stated, "Once we receive the NOC, we will follow the conditions mentioned and begin preparations for filing the DRHP."

However, he added that this could extend to several months in the post-approval phase before the IPO is available in the market.

In its most recent financial disclosures, NSE reported a 33% decline year-on-year in consolidated profit after tax, attributing some of the downturn to the provisions made for settlement applications linked to its past regulatory challenges. Despite this setback, the exchange's performance in the broader market remains influential, with a contribution of ₹28,308 crore to the exchequer during the first half of the financial year 2026.

As more developments unfold regarding the NSE's IPO, financial analysts and investors alike are closely monitoring the outcome, viewing it as a pivotal event in India's vibrant capital landscape.