NSE IPO Listing Likely in 7 to 8 Months as SEBI Grants Approval; LIC, Temasek & SBI Group Likely Key Sellers

The National Stock Exchange (NSE) of India's long-awaited Initial Public Offering (IPO) has moved a step closer after the Securities and Exchange Board of India (SEBI) granted regulatory approval to begin preparations. The clearance marks a major milestone for India's largest stock exchange, nearly ten years after it first filed papers to go public in 2016.

"We are delighted to receive SEBI approval for our IPO, a significant milestone in our growth journey. With SEBI's approval, we embark on a new chapter of value creation for all our stakeholders. This approval also reinforces confidence in NSE being an integral part of the Indian economy and a beacon of Indian capital markets," NSE Chairperson Srinivas Injeti described it as a defining moment in the exchange's growth journey.

NSE IPO Likely in 7-8 Months; DRHP in 3-4 Months

Ashish Chauhan, Managing Director and Chief Executive Officer (CEO) of NSE reportedly said the exchange is targeting a launch of the IPO within the next seven to eight months. He added that the Draft Red Herring Prospectus is expected to be prepared in the next three to four months, laying the groundwork for the public issue.

People familiar with the matter said the proposed IPO is expected to be entirely an offer for sale, with no fresh issue of shares. Existing shareholders are likely to sell between 4 percent and 4.5 percent of the exchange's equity as part of the listing, in what could be a roughly $2.5 billion public offering.

LIC, Temasek and SBI Group Likely Key Sellers To Participate in NSE IPO Sale

Life Insurance Corporation of India (LIC) and Temasek Holdings are expected to be among the key sellers in the IPO as per Bloomberg report. State Bank of India and SBI Capital Markets are also likely to participate as selling shareholders. All of NSE's approximately 1.9 lakh shareholders will be given the option to participate in the secondary sale.

According to data available on NSE's website, LIC holds a 10.72 percent stake in the exchange, while Temasek owns about 4.5 percent. SBI Capital Markets also holds roughly 4.5 percent, and SBI's stake stands at around 3.2 percent.

NSE's board is expected to form a dedicated committee in the coming days to oversee the IPO process. The committee is likely to include senior executives of the exchange and representatives of major shareholders such as LIC and SBI.

The board is scheduled to meet on February 6 to approve the financial results for the quarter ended December 2025 and may also decide on the formation of this committee.

NSE had initially filed its DRHP in December 2016, but the listing process was stalled following allegations of corporate governance lapses and unfair access to its algorithmic trading platform. The exchange later filed two settlement applications related to the case, proposing to pay close to Rs 13 billion.