The National Stock Exchange of India (NSE) reported that its Initial Public Offering (IPO) attracted 'unexpectedly large' demand, significantly exceeding the number of shares available for distribution, stated Managing Director and CEO of NSE Ashishkumar Chauhan on Tuesday.
Chauhan did not disclose the ratio between Domestic Institutional Investors (DIIs) and Foreign Portfolio Investors (FPIs), noting that the allocation process is still ongoing. He also mentioned that the initially expected book size of around 9000 crore rupees was reduced to over 6000 crore rupees, despite sustained high demand.
'The demand is unexpectedly large,' emphasized Chauhan, adding that the offering interested a large number of investors wishing to acquire a limited number of shares.
The allocation will be made among various categories of institutional investors, including domestic mutual funds, other domestic institutions, and FPIs, in accordance with prevailing regulations. The NSE IPO is scheduled to begin subscription on September 17 and conclude on September 21. The price band is set at 1700–1785 rupees per share. The offering is a Follow-on Public Offer (OFS), wherein existing shareholders sell up to 12.64 crore shares; no new NSE shares are being issued.
Chauhan also noted that initially, some shareholders were reluctant to sell their stakes at the proposed valuation, which led to a reduction in the offer from the previously stated 6.2% to 5.11%. Furthermore, NSE had to approach some of its shareholders to participate in the OFS so that the exchange could meet listing requirements.
Listing the exchange will provide existing shareholders with a more transparent and liquid way to realize their assets. Currently, NSE shares trade in a private market, where shareholders may face increased transaction costs and counterparty risks, according to Chauhan.
According to the company's IPO prospectus, the shares will be listed on BSE. Regarding pricing, Chauhan clarified that the company's bankers consulted with investors both in India and abroad, including large institutions, mutual funds, pension funds, and retail investors. He explained that during discussions, it was decided to maintain the option for retail investors.
The proposed IPO comes as NSE remains India's largest stock exchange by turnover in several key segments. According to the IPO prospectus, as of June 30, 2026, NSE accounted for 93.05% of India's money market turnover and 68.48% of equity options turnover based on the premium turnover for the three months ending June 2026.
Chauhan also refuted the notion that NSE's operations heavily depend on weekly options. He stated that weekly options currently account for about 42% of NSE's total revenue, compared to 60–70% three to four years ago. The rest of the revenue comes from monthly index options, equity options, stocks, equity futures, colocation services, data, indices, and other business areas. The exchange has also expanded its activities into various asset classes, including equities, currencies, commodities, interest rates, and power.
NSE's integrated business model includes exchange listings, trading, clearing and settlement, indices, and market data. Chauhan explained part of the decrease in NSE's EBITDA margin last year due to a large one-time fine, noting that the exchange's normalized EBITDA margin remained in the range of 76–79% over the past five years.
As per the company's IPO prospectus, NSE's consolidated operating revenue grew by 9% year-on-year to 4560 crore rupees in the quarter ending June 2026, and net profit increased to 3121 crore rupees compared to 2811 crore rupees the previous year.
Chauhan stated that NSE's investor base has significantly expanded beyond major cities in the country, and the exchange will continue efforts to attract more investors and companies from regions such as Jammu and Kashmir, Northeast, Odisha, Jharkhand, and Chhattisgarh to the capital market. As of June 30, NSE had 13.237 crore unique registered investors and 26.136 crore registered investor accounts, with investors spread across over 99% of India's postal codes. 3005 organizations are registered on the exchange platform with a cumulative market capitalization of 474.08 trillion rupees.
