6 hrs ago
NSE IPO Draws Long-Term Subscribe Call Despite Derivatives Risks
The National Stock Exchange of India is planning to sell shares to the public.
Investors can apply between September 17 and September 21, 2026.
The shares are priced between ₹1,700 and ₹1,785 each.
The money raised will go to existing shareholders selling their shares, not to NSE itself.
SAMCO Securities thinks the IPO may be good for people investing for a long time.
It says NSE is very large, profitable, technologically advanced and has no fund-based borrowings.
However, much of NSE’s income comes from derivatives, especially options.
Changes in rules or lower trading activity could reduce that income.
A small number of large trading members also provide a significant share of revenue.
NSE’s IPO will open on September 17, 2026, and close on September 21, 2026, with a ₹1,700–₹1,785 price band.
The issue is a 100% offer for sale, meaning proceeds will go to selling shareholders rather than NSE.
SAMCO Securities recommends subscribing for the long term, citing NSE’s market leadership, profitability, technology and debt-free balance sheet.
NSE reported ₹18,713.37 crore in total income in FY2026 and a 78.81% operating EBITDA margin in Q1 FY2027.
SAMCO identified derivatives dependence, falling equity-options market share and revenue concentration among major trading members as key risks.
- Who
- The National Stock Exchange of India Limited, selling shareholders, SAMCO Securities and analyst Raj Gaikar.
- What
- NSE is launching an initial public offering with a ₹1,700–₹1,785 price band, and SAMCO Securities has issued a long-term subscribe recommendation.
- Where
- The issue concerns the Indian stock exchange market.
- When
- The IPO is scheduled to open on September 17, 2026, close on September 21, 2026, and likely list on September 24, 2026.
- Why
- SAMCO Securities cites NSE’s market leadership, profitability, technology infrastructure, scalability and debt-free balance sheet, while warning about derivatives dependence and revenue concentration.
Long-Term Investment Case
Risk Considerations
Market position
Long-Term Investment Case
SAMCO Securities says NSE’s dominant market share, scale, liquidity, integrated clearing ecosystem and investor base create a strong competitive moat.
Risk Considerations
The article notes that NSE’s equity-options share by premium turnover fell from 96.86% in FY2024 to 68.48% in Q1 FY2027.
Revenue outlook
Long-Term Investment Case
SAMCO expects NSE’s profitability, scalability and structural capital-market growth to support its valuation at the upper price of ₹1,785.
Risk Considerations
Transaction-charge revenue declined 4.24% in FY2026, while futures transaction charges fell 14.31%; regulatory measures could further affect derivatives activity.
Business concentration
Long-Term Investment Case
NSE’s technology platform supports multiple products and had no reported operational data breaches during the periods cited.
Risk Considerations
The top 10 trading members contributed 47% of revenue in Q1 FY2027, creating exposure if major members lose activity, face financial distress or move to competing venues.
Key facts
- IPO dates
- September 17–21, 2026
- Price band
- ₹1,700–₹1,785 per equity share
- Issue structure
- 100% Offer for Sale; proceeds go to selling shareholders
- Likely allotment and listing
- Allotment on September 22 and listing on September 24, 2026
- FY2026 total income
- ₹18,713.37 crore
- Q1 FY2027 operating EBITDA margin
- 78.81%
- Registered investors
- 132.37 million as of June 30, 2026
- Main risk
- Transaction charges accounted for 78.65% of FY2026 revenue from operations, with options contributing 60.22%
Quotes
Raj Gaikar
Equity Research Analyst at SAMCO Securities
“National Stock Exchange of India Limited (NSE) offers investors an opportunity to participate in one of the strongest market infrastructure businesses in India. Its scale, liquidity, technology infrastructure, integrated clearing ecosystem and extensive investor base create a strong competitive moat,””
livemint.com
“At the upper price of ₹1,785, NSE is valued at 42.89x FY2026 earnings, which is supported by its superior market position, profitability, scalability and long-term growth opportunity,””
livemint.com
Sources
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