NSE IPO: SBI and LIC to Lead $2.5 Billion Sale

The National Stock Exchange (NSE) is set to embark on a significant journey with its upcoming IPO, valued at $2.5 billion. This move is crucial not only for the exchange but also for the broader Indian financial market. The involvement of major players like the State Bank of India (SBI) and the Life Insurance Corporation of India (LIC) as key sellers highlights the confidence in NSE's robust performance and growth potential.

Currently, NSE shares are being traded at ₹2,150 in the grey market, attributing a staggering valuation of approximately ₹5.3 lakh crore. This impressive figure positions NSE as the fourth most valuable exchange globally among its listed peers, as indicated by Bloomberg data. Such a valuation underscores the importance of the NSE in India's financial landscape, especially considering its dominance in the derivatives market, commanding over 75% of this sector.

In terms of financial performance, NSE has shown remarkable growth, reporting a 15% increase in revenue to ₹17,100 crore for FY25. Moreover, its net profit surged by an astonishing 44%, reaching ₹12,188 crore, resulting in a net margin of around 71%. These figures reflect the exchange's operational efficiency and its ability to capitalize on the growing trading activities in India.

To oversee the IPO process, NSE's board is expected to form a committee comprising top executives and representatives from major shareholders, including SBI and LIC. This committee will play a vital role in ensuring that the IPO process is managed effectively, aligning interests and strategies among key stakeholders. The board is scheduled to meet on February 6 to approve the financial results for the quarter ending December 2025 and to discuss the formation of this committee.

As the IPO date approaches, investor interest is likely to grow, particularly given the impressive financial metrics reported by the NSE. The combination of a strong market position, substantial revenue growth, and the backing of established financial institutions makes this IPO an enticing opportunity for potential investors. Overall, the upcoming NSE IPO is poised to be a landmark event in the Indian stock market, setting the stage for future growth and investment opportunities.