NSE IPO: Valuation, Price Band, Market Share And Derivatives Risk Ahead Of September 17 Opening
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NSE's IPO opens on September 17 with a price band of Rs 1,700-1,785 per share. The exchange dominates India's equity market, while options trading contributes a large share of its revenue. Its valuation compared with BSE, derivatives volumes and growth in other businesses will be key areas to track after listing.
The National Stock Exchange will open its IPO for subscription on September 17. The issue will close on September 21, with the price band fixed at Rs 1,700-1,785 per share.
At the upper end of the price band, NSE will be valued at about Rs 4.42 lakh crore. The IPO comprises 12.64 crore shares and is entirely an offer for sale. This means NSE will not receive any fresh capital from the issue and the proceeds will go to the existing shareholders selling their shares.
The issue size will be around Rs 22,562 crore at the upper end of the price band. The number of shares on offer has been reduced from the 14.9 crore shares proposed earlier.
NSE's market share
NSE has a dominant position in India's equity market. In FY26, it accounted for 92.99% of cash-market turnover and 99.79% of equity futures turnover. Its share of equity options premium turnover stood at 74.71%.
As of June 2026, NSE had 13.2 crore unique registered investors and 1,328 trading members. More than 3,000 companies were listed on the exchange.
BSE has gained market share in equity options in recent quarters. The shift is relevant for NSE because options trading accounts for a large share of its revenue.
Why derivatives are a risk for NSE
Transaction charges accounted for 78.6% of NSE's revenue from operations in FY26. Options contributed 60.2% of total revenue, while futures accounted for 8.9%.
Derivatives volumes have fallen from their 2024 peak after changes to India's futures and options market. Reuters reported that volumes were 27% below the 2024 peak.
The decline has been reflected in NSE's financial results. Revenue from operations fell 3.1% to Rs 16,601 crore in FY26, while profit after tax declined 15.5% to Rs 10,302 crore.
The June 2026 quarter was stronger. Revenue from operations rose 13.1% year on year to Rs 4,560 crore, while net profit increased 6.7% to Rs 3,120 crore.
The main risk from this revenue mix is that a sustained fall in options activity can reduce transaction income. Changes in regulations can also affect trading volumes and the products investors use.
NSE valuation versus BSE
NSE's IPO valuation can also be compared with BSE, India's only other listed stock exchange.
Business Standard reported that NSE's IPO valuation works out to about 42.9 times earnings based on SBI Securities' estimates. NSE's RHP puts BSE's P/E at 54.28 times.
The difference comes despite NSE being much larger by revenue and market share. NSE reported revenue of Rs 16,601 crore in FY26, compared with Rs 4,834 crore for BSE.
BSE has been gaining share in equity derivatives and has seen strong growth in its options business from a smaller base. NSE, on the other hand, already has a much larger share of the market.
Reuters also reported that NSE's IPO valuation is around 15%-20% below levels discussed during pre-IPO roadshows and about 40% below prices seen in private-market transactions in 2024.
NSE's businesses beyond trading
Trading accounts for most of NSE's revenue, but the exchange also earns from listing services, market data, connectivity and index licensing.
NSE has also expanded its commodities and energy offerings. These include electricity futures, Indian natural gas futures and Dated Brent crude oil futures. The exchange has also incorporated the National Coal Exchange of India as a subsidiary.
These businesses are smaller than the core trading operations, but they give NSE other sources of revenue.
What to watch after listing
NSE's derivatives volumes and equity options market share will be important numbers after listing. Any changes in regulations governing futures and options could also affect trading activity.
The contribution from market data, index licensing, listing services and the newer commodity and energy businesses will show how much of NSE's revenue comes from outside transaction charges.
For NSE, the key numbers after listing will be trading volumes, market share and the performance of its other businesses. The exchange enters the market with a dominant position, but a large part of its revenue remains linked to derivatives trading.
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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