NSE IPO Puts Exchange Stocks In Focus As BSE And MCX Outpace Unlisted Shares Over Five Years
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NSE's upcoming listing will bring another major exchange stock to India's public market. NSE's unlisted shares have gained 191.2% over five years, compared with 2,353% for BSE and 886% for MCX, while differences in business mix, scale and valuation set the three exchanges apart.
The National Stock Exchange is set to join BSE and Multi Commodity Exchange of India as a listed exchange business, bringing its shares into the public market after years of trading in the unlisted space.
NSE's unlisted shares have risen 191.2% over the past five years, according to Unlisted Arena. BSE has gained 2,353% during the same period, while MCX has risen 886%, according to ACE Equities data.
BSE's strong performance has come during a period of rapid expansion in its equity derivatives business. The exchange has gained share in equity options, which has helped lift its trading volumes and revenue.
NSE remains considerably larger. Its FY26 revenue stood at Rs 16,601 crore, compared with Rs 4,834 crore for BSE. NSE's average daily cash-market turnover is nearly 13 times BSE's, while the difference is even wider in equity futures.
MCX operates in a different segment. Its business is centred on commodity derivatives, making its performance less directly comparable with the two equity-focused exchanges. MCX shares have gained 886% over five years as activity in commodity markets increased.
NSE also has a commodity business, alongside its equity and equity derivatives operations. It has added products including electricity futures, natural gas futures and crude oil futures.
The upcoming NSE IPO will give the exchange a public-market valuation. The price band is set at Rs 1,700-1,785 per share, valuing NSE at around Rs 4.42 lakh crore at the upper end.
Based on SBI Securities estimates cited by Business Standard, the IPO valuation works out to around 42.9 times earnings. NSE's red herring prospectus puts BSE's P/E at 54.28 times.
The difference is notable given the gap in revenue between the two exchanges. BSE's higher multiple follows a sharp rise in its share price and growth in its derivatives business, while NSE is entering the market with a much larger existing operation.
The IPO comprises 12.64 crore shares through an offer for sale by existing shareholders. NSE will not receive fresh capital from the issue.
Once NSE lists, investors will have daily market prices for both NSE and BSE, making their earnings and valuations easier to compare. MCX will remain a separate reference point because of its focus on commodity derivatives.
Also Read - NSE IPO: Valuation, Price Band, Market Share And Derivatives Risk Ahead Of September 17 Opening
This article is for informational purposes only and should not be considered investment advice from Kotak Neo. For compliance T&C and disclaimers, Visit www.kotakneo.com/disclaimer
Rochelle Britto has spent 8+ years decoding India's markets, businesses, and consumer economy, reporting for ET Prime and Times Internet along the way, covering the stories behind the numbers.
A Mumbai native and perpetual planner of the next holiday, she stays far, far away from the eternal question, “Where are we going next?” When she's not chasing headlines, she's chasing new cultures, open roads, and a bit of quiet in nature.
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