NSE Begins IPO Preparations, Timeline Discussions Underway

The National Stock Exchange (NSE) has started formal preparations for its long-awaited initial public offering (IPO), holding its first joint meeting with all 20 appointed investment bankers earlier this week, according to people familiar with the matter.

At the meeting, the exchange and bankers began drafting the offer document and agreed on a tentative timeline for the listing. Work on identifying risks and preparing disclosures is expected to begin this week.

The move marks a key step after the exchange secured regulatory clearance earlier this year. It also signals that execution is now underway after years of delay.

Retail Outreach And Offer Structure

NSE plans to reach out to retail shareholders by the end of April to gauge their interest in participating in the offer-for-sale (OFS) portion. NSE’s registrar had already written to retail investors last month, asking them to indicate interest. Only shares held continuously since 15 June 2025 will be eligible for sale in the IPO’s OFS.

Once responses are received, bankers will take about three weeks to assess the feedback. During this period, the exchange will also firm up institutional participation. Key steps in the NSE IPO process include:

• Identification of risks and disclosures for the draft red herring prospectus (DRHP).

• Finalisation of institutional investors for the OFS.

Valuation And Filing Timeline

Clarity on valuation will come only after the sellers and the size of the stake sale are finalised. These are likely to be by the end of May. Discussions on valuation have not yet begun. If timelines hold, the exchange may file its draft papers with the Securities and Exchange Board of India (SEBI) by June or early July.

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Decade-Long Listing Effort

The IPO comes after nearly a decade of delays. NSE first filed for listing in 2016 but withdrew the plan amid the co-location controversy and subsequent regulatory scrutiny.

In January this year, the exchange settled the matter with SEBI for ₹1,300 crore, clearing the path for a fresh attempt. The offering is expected to be one of the largest in India, with an estimated 4-4.5% stake sale.

The listing is part of a broader pipeline of large IPOs expected in 2026. Planned offerings include those from Reliance’s Jio Platforms, SBI Funds Management, and Flipkart. This comes after a strong year for primary markets in 2025. In 2025, 371 companies raised over ₹1.75 trillion with large issues from HDB Financial Services, LG Electronics India, and ICICI Prudential Asset Management.

Sources:

Livemint

India IPO