NSE IPO: Existing shareholders trimmed stake sale ahead of IPO, says Chauhan

NSE’s press conference has concluded, with management outlining the exchange’s three-decade technology and innovation journey, dominant market position, diversified business opportunities and long-term growth prospects ahead of its much-awaited IPO.

NSE MD & CEO Ashish Chauhan defended the exchange’s IPO pricing process, saying management relied on its merchant bankers and advisers, while clarifying that NSE has not applied to SEBI to allow its own shares to trade on the exchange.

Management also sought to address concerns around NSE’s dependence on derivatives, saying the share of transaction-charge revenue has declined over the past five years, while data, connectivity, indices, commodities, EGRs, ETFs and the SIF ecosystem offer potential avenues for diversification.

The IPO will open for subscription on September 17 and close on September 21, with a price band of ₹1,700–₹1,785 per share. The issue comprises an OFS of up to 12.64 crore shares by existing shareholders.

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Morgan Stanley India managing director and co-head of investment banking Sachin Wagle called NSE’s public listing a “remarkable moment” for the exchange and India’s capital markets. He said millions of investors and traders who participate in the market will now have an opportunity to own a stake in the institution through the IPO.

“Most of India trades on this market, and they will now get a chance to own a sliver.”

NSE said India's ETF industry remains relatively small and could expand substantially, creating another potential growth avenue for the exchange. It also pointed to the potential expansion of gold, silver and other commodity markets as longer-term opportunities.

NSE said Electronic Gold Receipts could both address structural issues in India's gold market and create a new revenue stream for the exchange. The product is aimed at making gold trading easier while reducing concerns around purity, authenticity and physical storage.

“If EGR becomes a successful product... we have also in a way helped in creating a new kind of revenue stream which was non-existent up until now.”

NSE CFO Ian De Souza said the exchange's dependence on weekly index options is lower than often perceived. He said weekly index options contributed 46% of operating revenue in FY26, while monthly index options accounted for 6% and single-stock options for 8%.

He said NSE has close to 100% market share in monthly options and single-stock options, providing diversification within its options business.

Chauhan said the market has historically pushed back against several regulatory measures introduced by Sebi, but some of those changes ultimately helped attract more participants by making markets safer. He said NSE, as a market infrastructure institution, would continue to comply with Sebi's regulations.

Chauhan said NSE does not have a promoter and the IPO is entirely an offer for sale by existing shareholders. He said the exchange needed to secure enough shares from selling shareholders to meet the applicable public-shareholding requirement, following which it proceeded with the revised offer structure.

The final OFS comprises up to 12.64 crore shares, down from 14.89 crore shares proposed earlier.

Chauhan said NSE has not made any application to SEBI seeking permission for its own shares to be traded on the NSE platform after listing. He said the exchange's merchant bankers have been advising it on the matter and indicated that there is no immediate application in this regard.

“NSE has not made any application to SEBI for allowing its shares to be traded.”

For context, NSE has previously said it would not self-list on its own platform, with Chauhan stating that regulations prevent an exchange from doing so.

Krishnan highlighted NSE’s presence across equities, equity derivatives, fixed income, interest rates, currencies and commodities, along with mutual funds, ETFs, REITs, InvITs and other products. He said NSE offers a broad spectrum of asset classes with liquidity across the platform.

He added NSE sees significant potential in commodities as it builds liquidity in the segment. He highlighted recent growth in crude oil and natural gas contracts, saying the exchange is seeing increasing traction in its commodity products.

Krishnan said NSE’s crude oil options premium turnover crossed ₹3,000 crore on Thursday, calling it a new high for the exchange. He said the product had been close to zero in terms of premium turnover around eight months ago, highlighting the rapid build-up in commodity derivatives activity.

NSE chief business development officer Sriram Krishnan said the exchange remains the clear market leader in India and is among the largest exchanges globally. NSE says it was the world’s largest multi-asset exchange by number of trades in cash equities and contracts traded in equity derivatives in FY26.

Chauhan recalled that NSE recorded around 700 trades on its first day of equity-market operations in November 1994. Today, he said, the exchange can handle around 30 crore trades on a good day, underscoring the scale of its growth over three decades.