India’s most awaited IPO, National Stock Exchange (NSE), could finally be taking shape, with fresh insights from a Motilal Oswal report suggesting a probable IPO launch timeline of March 2026. The development has reignited investor excitement, particularly as ace investor Radhakishan Damani’s Stake in NSE, now valued at a staggering INR 9,771 crore, is poised to unlock massive value.
NSE IPO By March 2026: The Countdown Begins
Motilal Oswal Private Wealth, in a recent report, notes that the Securities and Exchange Board of India (SEBI) may issue a No-Objection Certificate (NOC) to NSE as early as July 2025, provided pending settlements are finalised. However, even with regulatory clearance, the report suggests a minimum lead time of 8–9 months to prepare and file the Draft Red Herring Prospectus (DRHP) and complete the review process, pushing the IPO window to March 2026 at the earliest.
This timeline was echoed by NSE MD & CEO Ashishkumar Chauhan in an interview, where he stated:
“We have applied for the SEBI NOC. Once received, it will take around 3–4 months to file the DRHP and another 2–3 months for SEBI’s review. In total, we’re looking at an 8–9 month window post-NOC before we go public.”
NSE IPO Regulatory Roadblocks Nearing Resolution
One of the major impediments to the IPO—the long-pending co-location and dark fibre cases—now appears to be clearing. On 20 June 2025, NSE offered a record INR 1,388 crore settlement to SEBI, the largest of its kind in Indian regulatory history. If accepted, it could clear the final hurdle and pave the way for listing.
Radhakishan Damani’s Stake in NSE
What truly amplifies the IPO’s appeal is its potential windfall for investors like Radhakishan Damani, founder of Avenue Supermarts (DMart) and one of India’s most respected market veterans.
Damani first acquired a 1.58% stake in NSE during the January–March 2020 quarter from Norwest Venture Partners, which was exiting amid regulatory heat. Over time, his holdings have grown to 3.90 crore shares, valued at approximately INR 9,771 crore, based on the current private market pricing of INR 2,500 per share.
This makes NSE his second-largest holding, after DMart, where he owns a 23% stake worth over INR 2 lakh crore. For a long-term investor known for quietly building high-conviction positions, NSE IPO marks a significant liquidity and valuation event.
Strong Financials Back the Optimism
Investors’ anticipation isn’t unfounded. NSE’s performance metrics are nothing short of exceptional:
- FY25 operational revenue: INR 17,141 crore (16% YoY growth)
- Net profit: INR 12,188 crore (47% YoY growth)
- EBITDA margin: 74%; PAT margin: 58%
- EPS: INR 49; Return on Equity (RoE): 45%
The exchange commands monopoly-like dominance in India’s capital markets—93.6% market share in cash equities, 99.9% in equity futures, and 87.4% in equity options.
Even amid regulatory changes in the F&O segment, the average option premium turnover rose from INR 47,900 crore in February 2025 to INR 58,200 crore in April 2025—demonstrating resilience and continued investor appetite.
Widening Investor Base and Grey Market Activity
Currently valued at around INR 5.75 lakh crore in the unlisted market, NSE has attracted over 1 lakh private shareholders. Its shares, traded in private markets in lots as small as 50, have seen prices fluctuate—from a high of INR 6,200 to a recent average of INR 2,285–2,500 per share.
PSUs like LIC, SBI, and SHCIL collectively hold a 23% stake, valued at INR 1.3 lakh crore, highlighting deep institutional backing. Foreign investors such as Temasek, Morgan Stanley, and PremjiInvest are also key stakeholders.
What This Means for Investors
For retail and institutional investors alike, the NSE IPO will be more than just another listing. It represents India’s only opportunity to own equity in a critical piece of financial infrastructure that rivals global exchanges in both scale and technological depth.
Motilal Oswal’s report notes that retail investor participation in India is just 3–4%, compared to 55–60% in the U.S., leaving massive headroom for expansion and revenue growth.
As India’s capital markets deepen, the NSE IPO could become a cornerstone asset in long-term portfolios, mirroring the long-term conviction play that Damani executed half a decade ago.
Conclusion
With SEBI’s NSE IPO NOC expected soon, regulatory clouds lifting, and Radhakishan Damani’s Stake in NSE poised for a breakout, the NSE IPO promises to be one of the most transformative public issues in recent Indian market history. For now, investors must wait a little longer, but March 2026 might just deliver the crown jewel of India’s capital markets.
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