NSE shares hit a record high in the grey market amid rising IPO buzz

The share price of the unlisted  National Stock Exchange (NSE) is witnessing a remarkable surge in the grey market, driven by renewed investor interest around its long-delayed initial public offering (IPO). The unlisted shares of the NSE spiked nearly 28% in a week, from ₹1,800 on May 22 to a lifetime high of ₹2,300 by May 28.

Propelled by the recent rally in its stock price, the market valuation of the NSE surged to ₹5.6 lakh crore in the unlisted market. This makes it the fifth largest stock exchange in the world in terms of total market capitalisation, ahead of Euronext and Hong Kong Exchanges and Clearing (HKEX), and close to the Japan Exchange Group (Tokyo Stock Exchange).

NSE now ranks tenth in terms of the most valued firms in India—ahead of FMCG heavyweights HUL and ITC , as well as Larsen and Toubro and HCLTech —according to the latest data available on the BSE on May 30.

“The growing interest is driven by the anticipation of its upcoming IPO, which Sebi has hinted is on the horizon. With regulatory hurdles expected to be cleared soon, NSE stands out as one of the most sought-after investment opportunities in the unlisted space,” said Krishna Patwari, founder and managing director of Wealth Wisdom India.

Gaurav Garg, an analyst at the Lemonn Markets Desk, says that the soaring grey market demand reflects confidence in NSE’s dominant position, strong financials, and the growing retail investment boom. “As regulatory clarity emerges, the IPO could be a landmark moment for India’s capital markets, providing investors with a rare opportunity to own a stake in one of the world’s most valuable stock exchanges.”

“However, regulatory hurdles remain. Sebi has mandated the NSE to make its clearing arm financially independent and resolve legacy issues, including a pending co-location case from 2015,” he added.

Growing optimism around NSE IPO

There has been growing optimism about the long-awaited NSE IPO in recent months, fuelled by the positive developments. It may be recalled that Sebi chairman Tuhin Kanta Pandey recently said that all the existing issues impeding the exchange’s public issue will be resolved soon. “All the outstanding issues related to the NSE IPO will be resolved, and we will move forward. I can't give you the timeline, but I think we should soon be doing it,” Pandey had told reporters on the sidelines of Assocham’s 16th Capital Market Conference held on May 22. The Sebi chairman also said that the regulator is working with the NSE to resolve outstanding issues—including governance, technology, litigation, and the clearing corporation.

Last month, during an exclusive interaction with Fortune India, Pandey had said that the regulator is not opposed to NSE’s IPO. “I want to dispel that opinion [that Sebi has been reluctant to allow the IPO]. BSE is already listed, so there’s no reason why NSE cannot be listed as well,” he had said.

Meanwhile, for the financial year ended March 31, 2025, the NSE posted a consolidated net profit of ₹12,188 crore, up 47% year-on-year. The consolidated total income for the year grew by 17% to ₹19,177 crore, while the consolidated operating Ebitda grew by 28% from the corresponding period last year to ₹12,647 crore in FY25.

In March this year, the NSE had reapplied for a fresh No Objection Certificate (NOC) from Sebi, which would allow the exchange to take further steps towards the listing of its shares.

NSE made its first attempt to list its shares on the domestic bourse in 2016, which was derailed after it got embroiled in the co-location controversy. According to the IPO document filed with Sebi, the company was looking to raise around ₹10,000 crore. Existing shareholders of the NSE, such as Tiger Global Management, Aranda Investments, SAIF Partners, Norwest Venture Partners, Citigroup Strategic Holdings, Goldman Sachs, State Bank of India, and others, were expected to dilute a 23% stake in the exchange through an offer for sale.