NSE IPO: DRHP filing today, ₹500,000 crore target

NSE’s long-awaited IPO moves closer

The National Stock Exchange (NSE) is likely to take a key step toward its long-awaited public listing, with sources indicating it may file its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (Sebi) as early as today. Multiple reports cited people familiar with the process saying the draft papers have been cleared by investors and could be filed within hours, including post-market hours. The proposed listing has been discussed for years and is closely watched because NSE is India’s largest exchange by activity and a core part of the country’s capital-market plumbing.

Market participants cited in these reports expect the IPO to be among India’s biggest, anchored by an implied valuation above ₹500,000 crore. The offer is expected to be a pure offer for sale (OFS), meaning the exchange itself is not expected to receive proceeds. Instead, existing shareholders would sell a portion of their holdings to the public.

DRHP filing timeline and what sources are saying

Sources tracking the process told media outlets that NSE is likely to file its DRHP with Sebi later in the day or by Thursday. Separate reports also said the filing could happen by Friday, reinforcing that the window is within this week.

The common thread across these updates is that procedural hurdles have been easing. Reports said Sebi has granted in-principle approval, which is seen as a significant milestone. With the draft papers expected to be filed, the next phase would move to Sebi’s review of the DRHP and any clarifications or changes sought by the regulator.

Valuation expectations: ₹500,000 crore plus in focus

Reports across outlets peg NSE’s expected valuation at more than ₹500,000 crore, with some placing the range at ₹500,000-525,000 crore. CNBC-TV18’s valuation scenarios also implied that, depending on offer size and pricing, valuation could extend higher, with illustrations linked to a 6% stake and issue sizes between ₹30,000-35,000 crore.

Another data point comes from the unlisted market, where NSE shares were reported to be trading around ₹1,950-2,050 per share. That unlisted trading range was described as implying a valuation of roughly ₹500,000 crore.

Offer size and stake sale: 5% to 6% dilution

On the offer structure, sources have cited slightly different estimates, but the range is consistent. Some reports said the offer size could be around 5% of NSE’s equity capital, while others indicated the IPO size could be closer to 6%. Moneycontrol reported that existing shareholders may collectively divest around 6% of the exchange’s equity.

At an unlisted valuation near ₹500,000 crore, market participants estimated an issue size of about ₹30,000 crore. Other reports placed potential proceeds above ₹20,000 crore, while a separate range cited was ₹21,000-25,000 crore. Taken together, the reporting suggests the final offer size and dilution could be finalized closer to filing, after discussions among shareholders and bankers.

Pure OFS structure: no fresh issue expected

A key point repeated across reports is that the IPO is expected to be entirely an offer for sale, with no fresh issue component. This means NSE would not receive proceeds from the IPO. The cash raised would go to the selling shareholders who tender their shares in the OFS.

This OFS-only structure also means investors will focus heavily on shareholding mix, which shareholders are selling, and whether major holders are participating. CNBC-TV18 reported that Life Insurance Corporation of India (LIC) is unlikely to sell any stake in the IPO, based on sources cited.

Sebi’s minimum public float rule and why 5-6% matters

The proposed dilution is also being discussed in the context of Sebi’s public float rules. Reports noted Sebi lowered minimum float requirements earlier this year, and for companies valued above ₹10,000 crore, the minimum public float referenced was 2.5%.

Against that benchmark, a 5% to 6% sale would be well above the minimum level cited in the reporting. For large, widely followed issuers, a higher float can support better liquidity and price discovery, but the final decision sits with the selling shareholders and the regulatory process.

Investor eligibility and shareholder base

The shareholder base is unusually broad for a high-profile Indian financial-market institution. A PTI-cited report said NSE has around 1.8 lakh shareholders. Another report added that the OFS could be restricted to shareholders who held fully paid-up NSE shares since June 2025.

That same report said eligible investors must file expressions of interest (EOIs) by April 27, 2026. If applied as described, these conditions would shape who can sell and potentially influence the final selling mix.

Market reaction: BSE shares fall as NSE filing nears

The reporting also flagged immediate market moves in listed peers. Shares of BSE snapped a three-day winning run on June 17 and were trading 3.5% lower as NSE’s DRHP filing and IPO expectations gained traction. The move was attributed to the market digesting the prospect of a large peer listing and the attention it could attract.

Such reactions are not unusual when a large, closely comparable company moves toward listing. Investors often reassess relative valuations, business momentum, and potential shifts in market interest.

What has changed since NSE’s earlier IPO plans

NSE’s IPO has a long history. Reports noted that when NSE first filed draft offer documents in 2016, the IPO size was pegged at ₹10,000 crore. The current projections are significantly larger, reflecting the scale of the exchange and its implied valuation in the unlisted market.

The renewed push, coupled with Sebi’s in-principle approval referenced in reports, suggests the listing process is entering a more concrete phase than earlier attempts.

Key facts at a glance

Why the DRHP filing is the pivotal near-term event

A DRHP filing is a concrete procedural step that converts market expectations into a formal regulatory process. It typically provides the first detailed public snapshot of the offering structure, risk disclosures, and selling shareholder details. For investors, that document will be important to understand the final OFS size, the participating sellers, and any conditions tied to the offer.

If NSE files the DRHP within the cited window, the next milestones would be Sebi’s observations and the company’s responses, followed by the final prospectus and the launch timeline, subject to approvals.

Conclusion

NSE’s expected DRHP filing with Sebi this week marks a meaningful step in a listing process that has been years in the making. Reports point to a ₹500,000 crore plus valuation and a pure OFS that could involve roughly 5% to 6% equity sale, with issue-size estimates ranging from above ₹20,000 crore to around ₹30,000 crore. The immediate spotlight now shifts to the DRHP itself and Sebi’s review, which will determine the precise contours and timing of what could become one of India’s largest capital-market listings.