NSE IPO: DRHP Filing Near, OFS May Raise ₹20,000 Cr

What is happening with the NSE IPO now

The National Stock Exchange of India (NSE) is expected to take a key step towards its long-awaited initial public offering by filing its draft papers with market regulator SEBI. People aware of the matter have indicated that the Draft Red Herring Prospectus (DRHP) could be filed around June 15 or June 16, with other reports also pointing to a filing “this week” or “by Friday.” The latest move follows the exchange receiving a regulatory green light in the form of a no-objection certificate (NOC) from SEBI. NSE’s board had approved the proposed IPO on February 6 after receipt of the NOC, according to the information shared in the reports.

The planned IPO is being widely tracked because NSE is India’s largest stock exchange and a critical part of the country’s market infrastructure. The listing process is expected to clarify how much equity comes to market and which shareholders decide to sell. The DRHP filing is a procedural step, and the document will be vetted by SEBI before NSE can launch the issue and list.

A pure Offer for Sale and why it matters

The proposed issue is expected to be entirely an Offer for Sale (OFS). That means no fresh shares are expected to be issued and NSE will not receive any proceeds from the IPO. Instead, existing shareholders would sell part of their holdings and receive the sale proceeds. Several reports describe the issue as “pure OFS,” and note that NSE is unlikely to raise new capital through the IPO.

This structure matters for investors because the IPO proceeds flow to selling shareholders, not to the company for expansion or other corporate use. It also puts the spotlight on which institutions sell, how much float comes to market, and whether the eventual dilution aligns with regulatory minimum requirements.

SEBI clearance and the regulatory steps ahead

SEBI has issued the no-objection certificate that allows NSE to proceed to the next stage, which is filing the DRHP. A separate update also pointed to “decks cleared for NSE IPO” after SEBI’s NOC, while explaining that the DRHP would still need to be vetted before a final approval enables the IPO launch.

Some reports suggested NSE was looking to file the draft papers by end-March or early April, while other updates now indicate June 15 or 16 as a likely filing window. Another timeline referenced an IPO launch “by Diwali,” describing November as the relevant period in the current calendar year. Separately, another update said the DRHP could be filed in 3 to 6 months and the IPO could be launched in H2 (July to December) 2026. These timelines reflect how plans can shift as the process moves through regulatory review.

Expected valuation signals and secondary market pricing

Multiple valuation markers have been cited. One report said NSE targets a $13 billion valuation. Another said India’s largest stock exchange is likely to be valued at nearly ₹5 lakh crore, based on shares trading around ₹2,000 per share and an implied valuation of about ₹4.95 lakh crore.

While these figures are not the final IPO price or valuation, they indicate the market’s reference points. They also help frame the potential OFS size when combined with estimates for the percentage of equity that may be offered.

How much could be sold: 2.5% to 4.5% estimates

The potential float size has been described in a few ways across the updates. One report cited a public float of 2.5% as likely, noting this could match the minimum dilution under SEBI regulations. Others stated that around 4% to 4.5% of NSE’s equity may come up for sale.

Based on the cited price of around ₹2,000 per share, one estimate said a 4.5% sale could translate to an issue size of approximately ₹23,000 crore. Another update said the IPO is expected to raise more than ₹20,000 crore. These numbers align with the idea that even a small percentage sale in NSE can become one of India’s larger equity offerings.

Who may sell and who may hold: LIC’s role

The shareholder list expected to participate is an important part of the story because the IPO is an OFS. Reports indicated that while LIC may not sell, several domestic and global investors may join the sale, including SBI, Bank of Baroda (BoB), SHCIL, public sector insurers, CPPIB, Temasek and ChrysCapital. Another report said over a dozen major institutional and corporate investors are expected to sell shares, while LIC may hold on to its stake.

LIC is described as the single largest shareholder in NSE, holding a 10.72% stake (also referenced as about 10.7% in another update). A separate note added complexity, stating that LIC has not decided how much stake it will offload in the public offering.

Key shareholdings and linkages highlighted in the reports

The updates also highlighted some ownership linkages and major stakes. SBI and its subsidiary SBI Capital Markets together own around a 7.5% stake in NSE, according to one report. Another update listed SBI Capital at about 4.3% and SBI at about 3.2%, consistent with the combined figure.

There was also a specific mention of the Stock Holding Corporation of India Ltd (SHCIL) and IFCI. IFCI, a public sector NBFC, holds a 52% stake in SHCIL, which in turn owns a 4.4% stake in NSE. These layers matter because any selling decisions can involve multiple entities and governance processes.

Market impact: what changes and what does not

Because the IPO is expected to be a pure OFS, NSE is not expected to raise new money from the issue. That reduces the likelihood of immediate balance-sheet changes tied to primary capital inflows. The principal market impact is instead on shareholder liquidity and price discovery, since the listing would provide a public market for NSE shares.

The reports also indicate that several shareholders may sell around 10% each of their shareholding, including SBI, BoB, SHCIL, Indian Bank, The New India Assurance Co. Ltd, The Oriental Insurance Co., General Insurance Corp. of India (GIC), National Insurance Co. Ltd and ICICI Lombard. If these sales materialise, they could meaningfully widen the traded free float, depending on the final offer size and allocation.

Summary table: key facts cited across updates

Why this matters: a listing driven by shareholder exits

The repeated emphasis on an OFS indicates the listing is expected to be driven by shareholder monetisation rather than fundraising by NSE. That makes the selling line-up and the eventual percentage offered central to the IPO’s shape. It also explains why LIC’s decision is closely tracked, given its position as the largest shareholder and the stated uncertainty about how much it might sell.

The next concrete milestone remains the DRHP filing, followed by SEBI’s review. Once those steps are completed, the company can move towards a launch window that has been variously described as later in the year or in H2 2026 in different updates.