The National Stock Exchange of India (NSE) has seen its valuation skyrocket by 60%, reaching $58 billion in private markets, as anticipation builds for its long-awaited initial public offering (IPO). Wealthy investors and institutions have been aggressively buying unlisted shares, fueling speculation that the IPO could happen as early as this year.
Key Highlights:
-
Valuation Surge: NSE’s valuation has jumped from $36 billion in September 2024 to $58 billion, driven by strong investor demand.
-
IPO Anticipation: The exchange is working to resolve a longstanding legal dispute with India’s securities regulator, which has delayed its listing for nearly a decade.
Investor Frenzy:
-
Unlisted NSE shares have been trading at ₹2,000 ($23) per share, with demand far outstripping supply.
-
Some market intermediaries had to return funds to investors after sellers backed out ahead of the expected IPO.
Competitive Positioning:
-
If listed, NSE’s valuation would surpass Nasdaq Inc. and narrow the gap with Deutsche Boerse AG ($62 billion).
-
NSE is strategizing to regain market share in equity derivatives, planning to change the expiration day of its contracts from Thursday to Tuesday.
Regulatory Challenges: NSE first filed for an IPO in 2016, but an investigation into high-speed trading access violations led to a six-month ban from capital markets, delaying its listing.
Strategic Outlook:
With investor enthusiasm at an all-time high, NSE’s IPO could be one of the biggest stock market events in India’s history. The exchange is expected to finalize its listing plans soon, potentially reshaping the global financial landscape.
Source: MSN, Moneycontrol, Economic Times.