News

The National Stock Exchange (NSE) will hold its board meeting on February 6 at 5 PM to discuss the next steps related to its long-awaited initial public offering (IPO).

The meeting will finalise the criteria for appointing merchant bankers and legal advisers, who will help in preparing the draft red herring prospectus (DRHP) for the listing.

As of December 2025, NSE had 1.84 lakh shareholders. Major investors include Life Insurance Corporation of India (LIC), State Bank of India (SBI), Temasek, Morgan Stanley, and Canada Pension Board. Among private investors, Radhakishan Damani is the largest shareholder.

NSE plans to dilute 4-4.5 per cent of its shares through an Offer for Sale (OFS), which could raise to Rs 23,000 crore. A fresh issue of shares may be considered if the target dilution is not achieved. The DRHP is expected to be filed by April.

As of April 11, 2025, total PSU shareholding in NSE was 31.29 per cent, held by 14 PSU entities. PSU insurance companies account for the largest portion of this stake. Major holdings among PSUs include LIC with 10.72 per cent, Stock Holding Corporation of India Ltd with 4.44 per cent, SBI Capital Markets with 4.33 per cent, and State Bank of India with 3.23 per cent.

Other PSU shareholders include General Insurance Corporation of India, The Oriental Insurance Company, National Insurance Company, The New India Assurance Company, Bank of Baroda, United India Insurance, Indian Bank, SBI Life Insurance, IDBI Trusteeship Services, and Punjab National Bank.

The board is also expected to constitute a specialised IPO committee that will serve as the central authority for the listing. This committee will define listing procedures and finalise the selection of merchant bankers and legal advisers required for the DRHP.

The board will also review and approve the exchange’s unaudited financial results for the quarter and nine-month period ending December 2025.

The NSE IPO has faced multiple delays over the past decade due to regulatory concerns and the co-location controversy. The exchange first filed draft offer documents in 2016, seeking to raise around Rs 10,000 crore through an OFS by existing shareholders.

SEBI withheld approval, citing governance concerns and issues related to preferential access given to certain brokers in the co-location case.

In 2025, NSE offered to settle the co-location case by paying Rs 1,388 crore, paving the way for the listing process. Following the settlement, SEBI granted a no-objection certificate (NOC) to NSE to proceed with its IPO.

SEBI Chairman Tuhin Kanta Pandey had earlier said that in-principle approval was granted to NSE’s settlement application in the unfair market access case, an important step toward clearing the IPO path.

NSE is currently estimated to have a market valuation of over Rs 5 lakh crore in the grey market. The exchange has around 1.77 lakh shareholders. NSE Managing Director and Chief Executive Ashish Kumar Chauhan had earlier said that the in-principle approval was a positive signal, although no formal communication had been received at the time.

He added that once the NOC is received, preparations for filing the DRHP would begin, which could take up to four months. The IPO itself may hit the market seven to eight months after the NOC is received.

The board meeting today is expected to be a key step in formalising the NSE’s IPO process, establishing necessary committees, and finalising advisors and procedures. Analysts say the proposed IPO could become one of the largest in India’s capital markets, marking a significant milestone for the country’s largest stock exchange.

The NSE’s listing is likely to attract both institutional and retail investors, given the participation of major PSUs, LIC, SBI, and private investors. The board meeting will also decide on the shareholding structure, timelines for the DRHP filing, and the execution of the OFS. The outcome of today’s meeting is expected to set the pace for NSE’s IPO in the coming months.