National Stock Exchange of India (NSE) is moving ahead with preparations for its long-awaited initial public offering (IPO) and is likely to appoint merchant bankers in March, according to reports. The step marks progress in the exchange’s listing journey, which has faced several delays over the past decade due to regulatory and governance concerns.
Merchant Bankers to Lead IPO Process
The exchange is expected to soon select merchant bankers who will manage the proposed IPO. These financial institutions will be responsible for preparing offer documents, coordinating regulatory filings, and overseeing the overall share offering process.
Once appointed, the bankers will begin drafting the required documentation and work closely with the Securities and Exchange Board of India (SEBI) to secure the necessary approvals for the public issue.
Advisory Support and IPO Committee
To support the listing process, NSE has already appointed Rothschild & Co as an independent adviser. The firm is assisting in the selection of lead bankers, legal advisers, and other intermediaries involved in structuring and executing the IPO.
In addition, the exchange has established a dedicated internal committee to oversee and monitor the progress of the listing plan.
Expected IPO Structure and Size
The IPO is expected to be structured as an offer for sale (OFS), allowing existing shareholders to sell part of their stake in the exchange. Preliminary indications suggest that around 4% to 4.5% of NSE’s equity may be offered to public investors.
Based on recent valuations in the unlisted market, the offering could potentially raise around $2.5 billion (approximately ₹22,700 crore).
IPO Plans Delayed for Years
NSE’s plans to go public date back nearly a decade. The exchange initially filed its IPO application with SEBI in October 2016, but the process stalled due to regulatory scrutiny.
The delay was largely linked to the co-location controversy, in which certain brokers were allegedly given preferential access to trading servers. The issue raised concerns about governance practices and technological oversight within the exchange.
Renewed Momentum After Regulatory Review
Momentum for the IPO returned after renewed regulatory evaluation of the proposal. Following the appointment of a new SEBI chairman in 2025, the regulator formed an internal committee to review outstanding issues related to NSE’s listing plans.
The process concluded earlier this year when NSE received a no-objection certificate, indicating that regulators are open to the listing moving forward in principle.
Key Role in India’s Financial Markets
NSE remains a critical pillar of India’s capital market ecosystem. Alongside the Bombay Stock Exchange (BSE), it forms the backbone of the country’s stock exchange infrastructure and operates one of the world’s largest derivatives markets by trading volumes.
The sector is characterised by high barriers to entry due to regulatory requirements, technological infrastructure, and the need for deep market liquidity.
Large Investor Base Awaiting Liquidity
NSE also has a broad shareholder base, with nearly 1.78 lakh investors, making it one of India’s largest unlisted companies in terms of number of shareholders.
Many of these investors have held their stakes for several years and are expected to use the IPO as an opportunity to partially or fully monetise their holdings. Legal advisers are reportedly working on mechanisms to ensure a fair allocation for this diverse shareholder group.
Summary:
The National Stock Exchange is advancing preparations for its long-awaited IPO and is expected to appoint merchant bankers soon. The public issue may involve the sale of around 4–4.5% equity through an offer for sale and could raise about ₹22,700 crore. After years of delays linked to regulatory concerns, the listing process has regained momentum following recent regulatory approvals.
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