NSE Share Price, IPO Price, Valuation & Financials: Is India's Biggest Exchange Undervalued?
NSE Share Price, IPO Price, Valuation & Financials: Is India's Biggest Exchange Undervalued?
The much-awaited NSE IPO is expected to become one of India's biggest public offerings. Investors are closely tracking the NSE share price in the unlisted market, expected IPO valuation, and whether the stock will be a better investment than BSE after listing.
The National Stock Exchange (NSE) operates India's largest stock exchange ecosystem. Unlike a traditional marketplace, it earns revenue from multiple businesses, including:
Equity and derivatives trading
Clearing and settlement services
Listing fees
Market data and terminal subscriptions
Colocation and connectivity services
Index licensing through Nifty indices
Investment income from its treasury portfolio
The biggest revenue driver is derivatives trading.
During FY26:
Transaction charges contributed around 78.65% of operating revenue.
Equity options alone generated nearly 60% of total operating revenue.
Futures contributed around 9%.
This makes derivatives the backbone of NSE's earnings.
However, stricter SEBI regulations around F&O trading—including higher lot sizes, weekly expiry changes, and revised fee structures—have slightly impacted trading volumes and profitability during FY26.
The proposed IPO is entirely an Offer for Sale (OFS).
That means:
No fresh shares will be issued.
NSE itself will not receive any money.
The entire proceeds will go to existing shareholders selling their stake.
Interestingly, NSE also does not have a traditional promoter, making its shareholding structure different from most listed Indian companies.
The IPO will include approximately 14.89 crore equity shares, representing around 6.02% of the company.
Some of the largest selling shareholders include:
State Bank of India
Bank of Baroda
Canada Pension Plan Investment Board
Aranda Investments (Temasek)
General Insurance Corporation
New India Assurance
National Insurance Company
United India Insurance
Stock Holding Corporation of India
Several of these investors purchased their shares years ago at extremely low prices and are expected to realize substantial gains through the IPO.
Notably, LIC—currently one of the largest shareholders—is not expected to sell shares in this offering.
Although the official price band has not been announced, market estimates suggest the IPO could raise between ₹22,000 crore and ₹25,000 crore.
Based on these estimates:
If the IPO size is ₹22,000 crore, the estimated NSE share price is ₹1,477, implying an estimated valuation of ₹3.66 lakh crore.
If the IPO size is ₹24,000 crore, the estimated NSE share price is ₹1,612, implying an estimated valuation of ₹3.99 lakh crore.
If the IPO size is ₹25,000 crore, the estimated NSE share price is ₹1,679, implying an estimated valuation of ₹4.16 lakh crore.
Meanwhile, the NSE share price in the unlisted market has valued the company close to ₹5 lakh crore, indicating strong investor interest ahead of listing.
Market experts expect the IPO to launch during the festive season of October–November 2026.
Many investors believe anchor investors decide the IPO price.
In reality, the process works differently.
The company and investment bankers first determine a price band after discussions with institutional investors during pre-IPO roadshows.
Anchor investors then participate one day before the IPO opens by bidding within that announced price range.
A strong anchor response often supports pricing at the upper end of the band, but the anchor book does not determine the price band itself.
Despite remaining India's most profitable stock exchange, FY26 witnessed a slight slowdown.
Revenue: NSE reported revenue of ₹16,601 crore in FY26, compared with ₹17,141 crore in FY25 and ₹14,780 crore in FY24.
Total Income: Total income stood at ₹18,713 crore in FY26, down slightly from ₹19,177 crore in FY25, and up from ₹16,352 crore in FY24.
Profit After Tax (PAT): The company posted a profit after tax of ₹10,302 crore in FY26, compared to ₹12,188 crore in FY25 and ₹8,306 crore in FY24.
Earnings Per Share (EPS): EPS was ₹41.62 in FY26, compared with ₹49.24 in FY25 and ₹33.56 in FY24.
Return on Net Worth (RoNW): RoNW was 33.2% in FY26, compared to 45.1% in FY25 and 37.6% in FY24.
The decline in revenue and profits was primarily driven by SEBI's tighter regulations on derivatives trading.
Nevertheless, NSE continues to generate industry-leading margins and maintains a strong balance sheet.
Market Capitalization: NSE has a market cap of approximately ₹3.99 lakh crore, while BSE has a market cap of ₹1.62 lakh crore.
Revenue: NSE generated ₹16,601 crore in revenue, compared to ₹4,834 crore for BSE.
Profit: NSE reported a profit of ₹10,302 crore, whereas BSE reported a profit of ₹2,487 crore.
Estimated P/E Ratio: NSE is valued at an estimated 38x P/E, while BSE trades at approximately 65x P/E.
NSE remains significantly larger than BSE in terms of revenue, profits, and market share.
However, BSE currently commands a higher valuation because of its faster earnings growth over the past few years.
NSE, on the other hand, offers investors:
Market leadership
Strong cash generation
High profitability
Dominant derivatives business
Massive competitive moat
If derivatives trading volumes recover after regulatory changes, many analysts believe the valuation gap between NSE and BSE could narrow over time.
The NSE share price continues to attract attention in the unlisted market as investors anticipate one of India's largest IPOs.
Although recent regulatory changes have temporarily slowed earnings growth, NSE remains the country's dominant stock exchange with unmatched scale, strong profitability, and multiple revenue streams.
Investors considering the IPO should closely monitor the official price band, valuation, and future growth outlook before making an investment decision.
With its leadership position and long-term business fundamentals, NSE is expected to remain one of the most closely watched listings in the Indian stock market.