NSE IPO: Expected IPO Price, Valuation & Is It Worth Buying at the Current Unlisted Share Price?

NSE is all set to list in the public market in the next couple of months. As per the DRHP, it will only list on the BSE. The NSE IPO is entirely an OFS of up to 14.89 crore equity shares with a face value of ₹1 each, which means about 6% of NSE’s paid-up equity capital, with key sellers like SBI, Bank of Baroda, etc., and an expected IPO size of about ₹30,000 crore. So, today, NSE unlisted shares are trading around ₹2,025 per share, which, in terms of valuation, is trading at a price-to-earnings (P/E) multiple of around 49x.

Major Growth Drivers for NSE Pre-IPO Shares

To understand whether it is the best time to buy NSE unlisted shares, let’s first look at the overall Indian capital market. Post-COVID, millions of new investors entered the market, leading to a significant increase in retail participation. The number of demat accounts across Indian depositories has grown from 55.13 million as of March 2021 to 224.51 million as of March 2026.

This reflects that individual investors have been increasingly allocating their savings to the capital markets, with the share of household net financial assets invested in equities and mutual funds increasing from 5.41% in Fiscal 2021 to 26.89% in Fiscal 2025, according to the RBI. Further, AMFI data shows that SIP contributions in India have increased from ₹960.80 billion in Fiscal 2021 to ₹3,495.89 billion in Fiscal 2026.

All of this has been driven by India’s JAM infrastructure (Jan Dhan bank accounts, Aadhaar, and mobile numbers), which simplified digital onboarding and KYC processes. Combined with the rapid growth of digital brokerage platforms, this has enabled millions of first-time investors to enter the Indian stock market, creating a strong structural growth opportunity for NSE.

How NSE Became India’s Leading Stock Exchange

When millions of people entered the market, they first started investing and trading in equities and then gradually moved to Futures & Options (F&O) trading to earn short-term gains. As trading activity increased, exchanges like NSE and BSE generated significant revenue.

Looking at the financials, NSE’s revenue increased from ₹11,856 crore in FY23 to ₹16,601 crore in FY26, while BSE’s revenue increased from ₹925 crore in FY23 to ₹4,834 crore in FY26. But how much of this revenue comes from Futures and Options trading?

NSE generated about ₹13,057 crore from its transaction business. Out of this, ₹1,554 crore (9.36%) came from the cash market, ₹1,480 crore (8.92%) came from equity futures, and ₹9,997 crore (60.22%) came from equity options. Mutual funds contributed only ₹18 crore (0.11%). Overall, the transaction business contributed around 78% of NSE’s total revenue, while equity options alone contributed nearly 60% of the company’s total revenue.

A large portion of NSE’s revenue still comes from transaction-based businesses. However, when you look at global exchange operators, the majority of their revenue now comes from service-based businesses such as market data, indices, and software solutions. For example, Nasdaq generates around 35% of its revenue from software and 25% from market data and index services, while LSEG generates around 40% from market data and index services and 20% from software solutions.

Looking at NSE’s market position, the exchange had a 92.99% market share in total cash market turnover (NSE: ₹260.63 trillion; Industry: ₹280.26 trillion), 99.79% market share in equity futures turnover (NSE: ₹393.82 trillion; Industry: ₹394.67 trillion), and 74.71% market share in equity options premium turnover (NSE: ₹142.42 trillion; Industry: ₹190.65 trillion) in India.

At first glance, these numbers make NSE look like an undisputed market leader. However, a major challenge emerged when SEBI introduced several regulatory changes in the F&O segment. These included increasing the Securities Transaction Tax (STT) on options (sale) from 0.0625% to 0.10% and on futures (sale) from 0.0125% to 0.02%, increasing the minimum lot size requirement from around ₹5–10 lakh to ₹15–20 lakh, and allowing each exchange to offer only one weekly expiry. In addition, the government increased the Short-Term Capital Gains (STCG) tax to 20%.

These changes resulted in a decline in trading activity. Between FY25 and FY26, NSE’s cash market average daily turnover declined from ₹11.30 lakh crore to ₹10.55 lakh crore, equity futures average daily turnover declined from ₹18.59 lakh crore to ₹15.94 lakh crore, and equity options average daily premium turnover declined from ₹312 lakh crore to ₹258 lakh crore.

NSE IPO Valuation: Is the Current Unlisted Share Price Justified?

Even though NSE is significantly larger than BSE in terms of revenue, profit, and market share, BSE has been catching up rapidly over the last few years. So, let’s look at the valuation.

At the current NSE unlisted share price of around ₹2,025, the company is valued at nearly ₹5 lakh crore, implying a Price-to-Sales (P/S) ratio of around 30x, compared with BSE’s 29x P/S. Looking at the Price-to-Earnings (P/E) ratio, NSE is trading at around 49x, while BSE trades at around 59x.

At first glance, NSE appears cheaper based on the P/E multiple. However, valuation should also be compared with growth. Over the last three years, NSE’s revenue has grown at only around 6% CAGR, whereas BSE has delivered nearly 72% CAGR. Similarly, NSE’s EPS has grown by around 41%, compared with 122% for BSE.

This is reflected in the PEG ratio, which adjusts valuation for earnings growth. NSE trades at a PEG of around 1.19x, while BSE trades at only 0.48x. Although BSE has a higher P/E multiple, its much stronger earnings growth justifies the premium valuation. In comparison, NSE’s current valuation leaves relatively less room for growth unless the company accelerates its revenue beyond its transaction-driven business.

Expected NSE IPO Price: Comparison with Global Peers

To estimate the expected NSE IPO price, it is useful to compare its valuation with leading global stock exchange operators.

Compared with global peers, NSE is trading at a premium P/E multiple, largely because of its dominant market position and strong transaction-driven earnings. However, unlike global exchanges, a significant portion of NSE’s revenue still comes from transaction fees, particularly equity options, whereas companies such as Nasdaq, ICE, and LSEG generate a much larger share of their revenue from recurring businesses like market data, index licensing, analytics, and software services.

Interestingly, despite trading at a higher P/E, most global exchanges have higher PEG ratios than NSE, suggesting that NSE’s valuation is still supported by its earnings growth. However, the company’s heavy dependence on transaction revenue means investors should assign some discount compared to global peers with more diversified business models.

Considering the expected IPO size of around ₹30,000 crore, current unlisted market valuation, and recent IPO trends where large public issues such as SBI AMC were priced below prevailing market expectations to ensure healthy investor participation, we believe NSE’s fair IPO price could be in the range of ₹1,970–₹2,100 per share. While a stronger market environment could support a higher valuation, leaving reasonable upside for public investors generally results in better post-listing performance.

Rising Competition: A Key Risk for NSE

Although NSE continues to dominate India’s stock exchange industry, competition is gradually increasing. SEBI has granted in-principle approval to NSDX to enter the cash and derivatives market. However, in February 2026, SEBI directed the new exchange to first establish itself in the cash market before expanding into derivatives.

At the same time, MSEI has received fresh capital support from strategic investors, including Zerodha, Groww, and Citadel, with around ₹1,250 crore invested in MSEI, while NCDEX has also raised approximately ₹770 crore. Although these exchanges are unlikely to challenge NSE’s leadership in the near term, increasing competition could gradually reduce NSE’s market share and pricing power over the long term.

Should You Buy NSE Unlisted Shares for the Long Term?

Despite the recent regulatory changes, the long-term outlook for India’s capital markets remains strong. As more household savings shift towards financial assets, every major segment of the exchange business is expected to grow over the next few years.

• Cash Market: Expected to grow from ₹280.26 trillion in FY26 to ₹473–507 trillion by FY30 (14–16% CAGR).
• Equity Futures: Expected to increase from ₹394.67 trillion to ₹715–765 trillion (16–18% CAGR).
• Equity Options: Expected to grow from ₹190.65 trillion to ₹269–289 trillion (9–11% CAGR).
• Corporate Bonds: Projected to grow from ₹21 lakh crore to ₹35–41 lakh crore (13–18% CAGR).
• Currency & Commodity Futures: Expected to increase from ₹175 lakh crore to ₹307–363 lakh crore (15–20% CAGR).
• Currency & Commodity Options: Projected to grow from ₹16 lakh crore to ₹35–41 lakh crore (20–25% CAGR).

While regulatory changes may impact trading volumes in the short term, the long-term growth across all capital market segments provides a strong structural growth opportunity for NSE.

FAQs on NSE Unlisted Shares & IPO

1. What is the expected IPO price of NSE?

Based on the current unlisted market price, peer comparison, and valuation analysis, the expected NSE IPO price could be in the range of ₹1,970–₹2,100 per share. However, the final price will depend on market conditions and investor demand.

2. What is the current price of NSE unlisted shares?

NSE unlisted shares are currently trading at around ₹2,025 per share in the unlisted market. Prices may vary depending on demand, supply, and transaction size.

3. Is NSE overvalued compared to BSE?

At the current valuation, NSE trades at around 49x P/E, while BSE trades at around 59x P/E. However, BSE has delivered significantly higher revenue and earnings growth, resulting in a lower PEG ratio than NSE.

4. Why is NSE valued at a premium?

NSE commands a premium valuation because it is India’s largest stock exchange with over 90% market share in several trading segments, high profitability, and strong cash generation.

5. What are the biggest risks for NSE?

The key risks include SEBI’s regulatory changes in the F&O segment, higher STT, dependence on options trading for a significant portion of revenue, and rising competition from BSE, MSEI, and NSDX.

6. Who are the major sellers in the NSE IPO?

The NSE IPO is expected to be a 100% Offer for Sale (OFS), with existing shareholders such as SBI, Bank of Baroda, and other institutional investors selling part of their holdings.

7. Should long-term investors buy NSE unlisted shares?

NSE remains a high-quality business with strong long-term growth potential. However, investors should focus on the company’s valuation, competitive landscape, and long-term earnings growth rather than investing only for potential IPO listing gains.

8. Why are NSE unlisted shares in high demand?

Investor interest has increased because NSE is India’s largest stock exchange, has consistently generated high profits, and is expected to launch one of the country’s biggest IPOs.

9. How does NSE compare with global exchanges like Nasdaq and LSEG?

NSE trades at a higher P/E than many global exchanges. However, global peers generate a much larger share of revenue from recurring businesses such as market data, software, analytics, and index licensing, making their revenue streams more diversified.

10. Is NSE a good long-term investment after the IPO?

If India’s capital markets continue to grow as expected, NSE is well positioned to benefit from rising retail participation, institutional investments, and increasing trading volumes. Long-term returns, however, will depend on the IPO valuation and future earnings growth.