IGI Logo

India’s Premier Exchange, Anchored to Capital Market Growth… National Stock Exchange of India Ltd (NSE), incorporated in 1992, is India’s largest stock exchange and one of the world’s leading multi-asset exchange platforms. It operates an integrated ecosystem spanning trading, clearing, settlement, listing, market data, and index services across equities, derivatives, currencies, commodities, debt, and mutual funds. Supported by robust technology infrastructure, NSE facilitates high-speed execution, efficient risk management, transparent market operations, regulatory compliance, and seamless post-trade settlements.

• India’s equity futures market is projected to grow at a CAGR of 16-18% through FY30, supported by rising institutional participation, increasing market depth, and continued product innovation.

• Topline grew ~13% YoY to Rs 4,560cr in Q1FY27, while NSE’s asset-light, scalable business model and market leadership support strong EBITDA and Adj. PAT margins of ~78% and ~67%, respectively.

• As of Q1FY27, NSE commands ~93.1% market share in cash equities, ~99.7% in equity futures, and ~68.5% in equity options, serving 132+ million investors and ~3,005 listed entities with high-speed processing of ~13 billion messages daily.

• NSE Clearing Ltd (wholly owned subsidiary) maintained the mandated Rs 10,500cr core Settlement Guarantee Fund (SGF) corpus as of Dec 2024, reinforcing the resilience of its clearing and settlement ecosystem.

• NSE has provided ~Rs 1,492cr towards the colocation matter under its settlement arrangement with SEBI, including ~Rs 1,391cr recognized in FY26 and ~Rs 100cr in earlier periods.

• At the upper price band of Rs 1,785, NSE is valued at P/E of ~42x on FY26 Adj. EPS on a post-issue basis, which is lower compared to its peer. The company benefits from its dominant position across India’s equity and derivatives markets, supported by strong network effects, a vast investor ecosystem, and scalable technology infrastructure. Its asset-light business model enables consistently high margins and cash generation, while growing capital market participation and increasing financialization provide a strong long-term growth runway. Hence, we assign a “SUBSCRIBE” rating for medium to long-term investors.

Purpose of IPO

The offer consists Offer for Sale (OFS) of up to ?22,562cr. The OFS comprises shares offered by 20 corporate and 3 individual selling shareholders. The top 10 selling shareholders are: State Bank of India (up to 15,969,410 shares), Canada Pension Plan Investment Board (11,874,060 shares), Aranda Investments (Mauritius) Pte Ltd (up to 11,246,336 shares), MS Strategic (Mauritius) Ltd (up to 11,000,000 shares), The New India Assurance Company Ltd (up to 10,500,000 shares), SBI Capital Markets Ltd (up to 8,780,590 shares), Bank of Baroda (up to 7,690,375 shares), Stock Holding Corporation of India Ltd (up to 6,187,500 shares), General Insurance Corporation of India (up to 6,187,500 shares), and United India Insurance Company Ltd (up to 6,000,000 shares).

Key Risks

• Derivatives Concentration Risk: ~69% of FY26 revenue was generated from F&O trade transaction charges, indicating high reliance on derivatives trading volumes.

• Regulatory Risk: Operates in a SEBI-regulated industry and is subject to periodic inspections, evolving regulations, and compliance requirements.

For More Geojit Financial Services Ltd Disclaimer https://www.geojit.com/disclaimer
SEBI Registration Number: INH20000034