NSE board approves IPO via OFS

The Stock Exchange of India (NSE) has formally approved plans to launch its long-pending initial public offering through a pure offer for sale (OFS) by existing shareholders, marking a decisive step in a listing journey that has stretched close to a decade.

The exchange has already received a no-objection certificate from the Securities and Exchange Board of India (SEBI), clearing a key regulatory milestone.

An earlier CNBC-TV18 report had said the NSE is targeting the filing of its draft red herring prospectus (DRHP) by the end of March or early April.

If the exchange uses audited financials for the September quarter, the filing could take place by March-end, the report added. However, if documentation timelines extend, NSE may file in April using December quarter audited numbers. Regulations permit DRHP filings with financial statements that are not older than six months, it further said.

The CNBC-TV18 report indicated that around 4.5% of NSE’s equity is likely to be sold in the offering. At the prevailing unlisted market price of roughly ₹2,000 per share, the issue size could be in the region of ₹23,000 crore, potentially making it one of the largest public offerings in India’s capital markets.

NSE Managing Director and Chief Executive Officer Ashish Kumar Chauhan has previously indicated a preference for the OFS route, which would enable existing shareholders to dilute their holdings without a fresh capital raise. However, he has also said that a fresh issue may be considered if the desired dilution cannot be achieved solely through shareholder sales.

One operational complexity is the exchange’s sharply expanded shareholder base. NSE now has about 1.91 lakh shareholders, compared with around 5,000 in December 2023, 20,500 in December 2024 and nearly 1.84 lakh by December 2025.

Given the OFS structure, the exchange will need to engage with shareholders and seek consent for participation, a process that could prove time-consuming given the dispersed ownership.

NSE’s earlier attempt to go public in 2016 was shelved amid regulatory investigations linked to the co-location and dark fibre cases, which subsequently reached the Delhi High Court.

While clearance from SEBI’s High-Powered Advisory Committee was earlier viewed as a prerequisite, the regulator issued its no-objection certificate without waiting for formal committee approval.

The exchange filed a settlement application on June 20, 2025, and has agreed to pay around ₹1,400 crore in connection with the co-location and dark fibre matters. It had already made a provision of ₹1,297 crore in its November 2025 disclosures.