NSE debuts with a modest 5% gain after $2.4 billion IPO

The National Stock Exchange (NSE) in India made a measured market debut on Thursday, with its shares rising as much as 5.2 per cent to Rs1,878 in early trade on the BSE. The IPO price was Rs1,785.

The gain was modest, but the listing itself was not. The $2.4 billion offering is the second-largest in Indian market history, behind only Hyundai Motor India's $2.9 billion share sale in 2024. At the offer price, NSE is valued at $46 billion, which makes it the world's eighth-largest listed exchange by market value. London Stock Exchange Group is valued at about $52.5 billion.

The gain was modest, but the listing itself was not. The $2.4 billion offering is the second-largest in Indian market history, behind only Hyundai Motor India's $2.9 billion share sale in 2024. At the offer price, NSE is valued at $46 billion, which makes it the world's eighth-largest listed exchange by market value. London Stock Exchange Group is valued at about $52.5 billion.

The issue was subscribed 5.7 times, with institutions leading the demand. LIC, Norges Bank Investment Management, ICICI Prudential Asset Management, Quant Mutual Fund and Mirae Asset Mutual Fund were reported to be among the top bidders in the main book. Goldman Sachs Asset Management, HSBC, Fidelity, GIC, Abu Dhabi Investment Authority and Eastspring took part in the anchor book.

Muted enthusiasm for the IPO

Retail investors were more cautious. Concerns over derivatives volumes, tighter regulation and the prospect of more share supply weighed on sentiment. Valuation concerns had earlier forced NSE to scale back both the size and the price of the offering.

Options trading fees made up more than 60% of NSE's operating revenue in fiscal 2026, so the regulatory tightening on speculative derivatives trading matters. Bloomberg Intelligence analyst Sharnie Wong pointed out how overall earnings growth had slowed in fiscal 2026 and is likely to stay under pressure in the near term because of regulatory scrutiny and higher taxes on equity futures and options.

Brighter long-term prospects

Brokerages and market veterans are more upbeat on the long term. Macquarie initiated coverage with an outperform rating, calling NSE "the dominator" on market share and technology. Raamdeo Agrawal, chairman and co-founder of Motilal Oswal Financial Services, said the exchange could grow 15% to 20% a year over the next decade, helped by new products, longer trading hours and expansion into commodities and data, though he noted regulatory headwinds could temper near-term growth.

The listing ends a long road for the exchange, whose first attempt to go public in 2016 was held up by regulatory and governance issues.