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NSE IPO Draws Excitement, But Valuation Warrants Patience
NSE is India’s biggest stock exchange, where people trade through brokers.
It is selling shares to the public in a very large IPO.
The company is profitable and has a strong position in many markets.
However, much of its income comes from options trading.
Regulators may introduce more rules because many individual traders have lost money in options.
More rules could reduce NSE’s trading revenue.
Bombay Stock Exchange has also been taking some of NSE’s options market share.
The IPO price is higher than the valuations of several large global exchanges.
Because of these risks, the analysis says investors may want to wait rather than buy immediately.
National Stock Exchange’s ₹22,562-crore IPO, entirely an offer for sale, is open for subscription until September 21, 2026.
The ₹1,700-1,785 price band values NSE at about ₹4.4 lakh crore and roughly 43 times FY26 earnings.
Options transaction charges generated about 60% of NSE’s FY26 operating revenue, creating concentration and regulatory risks.
NSE remains India’s dominant exchange, but its equity-options market share has fallen as Bombay Stock Exchange gains ground.
The analysis recommends waiting for potentially better post-listing entry points because NSE trades at a premium to global peers despite slower recent growth.
- Who
- National Stock Exchange and investors considering its IPO.
- What
- National Stock Exchange is offering ₹22,562 crore of existing shares through an offer for sale.
- Where
- India’s capital markets; the IPO is for National Stock Exchange shares.
- When
- The IPO is open until September 21, 2026; the analysis was published on September 19, 2026.
- Why
- The analysis advises patience because NSE depends heavily on options revenue, faces competition and regulatory risks, and is valued at a premium to global peers.
Reasons to Consider the IPO
Reasons to Wait
Market leadership
Reasons to Consider the IPO
National Stock Exchange dominates India’s equity cash market and holds leading positions across several trading segments, including equity derivatives.
Reasons to Wait
Market leadership may not fully justify the price because its equity-options share has declined and Bombay Stock Exchange is gaining share.
Growth and profitability
Reasons to Consider the IPO
NSE reported ₹10,302 crore in FY26 profit after tax, a 67% operating EBITDA margin and a broad range of revenue streams beyond trading fees.
Reasons to Wait
Operating revenue grew at only a 6% FY24-26 CAGR, while options revenue declined after regulatory measures took effect and non-transaction revenue remains relatively small.
Valuation
Reasons to Consider the IPO
NSE’s roughly 43-times FY26 earnings multiple is below Bombay Stock Exchange’s cited 53-times multiple and reflects its dominant position.
Reasons to Wait
NSE trades above Nasdaq, Intercontinental Exchange and Cboe Global Markets despite slower recent revenue growth, leaving limited margin of safety for new investors.
Key facts
- IPO size
- ₹22,562 crore, described as India’s second-largest IPO.
- Price band
- ₹1,700-1,785 per share.
- Issue type
- Entirely an offer for sale; National Stock Exchange will receive no IPO proceeds.
- Subscription status
- 115% subscribed as of the close on September 18, 2026.
- FY26 operating revenue
- ₹16,601 crore, with transaction charges contributing ₹13,057 crore.
- Options revenue share
- Options transaction charges accounted for about 60% of FY26 operating revenue.
- Indicative valuation
- About 43 times FY26 earnings at the upper price band, compared with about 53 times for Bombay Stock Exchange.
- FY26 profit
- Profit after tax was ₹10,302 crore.
Sources
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