NSE Unlisted Shares Surge 10-15% on IPO Buzz as SEBI Signals Approval This Month
NSE unlisted shares have surged 10-15% following SEBI's signal that IPO approval could come this month, with the exchange planning March prospectus filing at ₹5 lakh crore valuation. Despite recent financial headwinds including 33% profit decline due to derivatives regulations, market experts remain divided on whether current unlisted valuations offer value or if investors should await IPO pricing clarity.
*this image is generated using AI for illustrative purposes only.
NSE shares in the unlisted market have witnessed a sharp rally of 10-15% over recent days, driven by renewed IPO speculation and the strongest regulatory signal yet that India's largest stock exchange may finally proceed with its public listing. The surge follows SEBI chief's indication that a long-awaited no-objection certificate could be issued this month, marking what investors interpret as a turning point in a listing process that has stretched nearly a decade.
IPO Timeline and Market Valuation
According to reports, NSE plans to file its draft red herring prospectus by March-end and is currently in discussions with investment bankers and law firms to finalize documentation and assess investor appetite. If executed as planned, the offering could rank among India's largest IPOs in capital market history.
| Parameter: | Current Status |
|---|---|
| Unlisted Market Valuation: | ₹5.00 lakh crore |
| Current Share Price: | ₹2,095.00 |
| Recent Price Surge: | 10-15% |
| Total Shareholders: | 1,77,807 |
The exchange operates with an unusually large shareholder base for an unlisted entity, making it India's largest unlisted company by investor count. Legal teams are reportedly developing mechanisms to ensure fair exit opportunities for this diverse group, with priority likely given to banks and foreign institutions holding long-term stakes.
Financial Performance Under Pressure
Despite the listing optimism, NSE's recent financial performance reflects regulatory headwinds. SEBI's November 2024 clampdown on equity derivatives, including the ban on multiple weekly contracts to curb excessive speculation, significantly impacted trading volumes and exchange revenues.
| Financial Metric: | September Quarter Performance |
|---|---|
| Consolidated PAT: | Declined 33% YoY |
| Revenue from Operations: | Declined 18% YoY |
| Primary Impact: | Derivatives segment regulation |
These numbers highlight that while NSE maintains a strong long-term franchise, its earnings remain vulnerable to regulatory changes affecting its most profitable segments.
Market Expert Perspectives
Investment professionals present mixed views on current unlisted market activity. Tejas, VP-Marketplace at Qapita, notes that investor reaction was anticipated given the IPO's multi-year development. "NSE's IPO has been in the making for a few years now. Investors have reacted positively to the news, and we are seeing increased buyer interest that has resulted in unlisted trading prices moving higher by about 10% from the pre-announcement date," he stated.
However, Divam Sharma, co-founder of Green Portfolio, expresses caution about current valuations. "We would suggest that investors should not go aggressive and buy NSE shares at these valuations. The IPO should offer better pricing as market sentiments are also weak," he advised, noting the 15% price increase in recent days.
Investment Considerations and Peer Comparison
NSE's strategic positioning as India's largest stock exchange and the world's most active derivatives bourse by contract volume underpins its long-term investment appeal. The exchange operates within a near-duopoly alongside BSE, benefiting from high entry barriers including technology requirements, regulatory oversight, and liquidity needs.
For comparison, BSE shares currently trade at ₹2,767.00, reflecting strong re-rating as cash market volumes improved. While some analysts believe NSE could command a premium given its derivatives dominance, others argue regulatory risks warrant conservative valuation approaches.
Strategic Decision Framework
Investors face a choice between immediate unlisted market exposure and waiting for IPO clarity. Unlisted market participation offers early access and avoids allocation uncertainty but involves higher price opacity, limited liquidity, and potential peak optimism risks. IPO participation may provide clearer disclosures, regulated pricing, and better exit flexibility, though aggressive pricing could limit upside potential.
Market consensus acknowledges NSE as a high-quality asset with strong long-term relevance to India's financial infrastructure. The primary debate centers on timing and valuation rather than fundamental investment merit, with conservative investors potentially benefiting from IPO evaluation against detailed financials, while long-term focused investors might consider staggered exposure strategies.
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