The National Stock Exchange of India (NSE) has witnessed a significant surge in its valuation, climbing 60% to reach $58 billion (approximately ₹5 lakh crore) in private markets. This remarkable growth is attributed to heightened investor interest and the anticipation of a long-awaited Initial Public Offering (IPO) .
📈 Surge Driven by IPO Prospects
The NSE’s valuation increase is largely driven by aggressive buying of its unlisted shares by wealthy investors and institutions, who are optimistic about the exchange’s potential IPO. The demand for these shares has outpaced supply, leading to a significant rise in their price, with some trading at ₹2,250, up ₹475 from the previous day .
⚖️ Resolving Regulatory Hurdles
The NSE’s IPO plans, initially filed in 2016, were delayed due to regulatory challenges, including a co-location case where certain brokers were alleged to have gained unfair access to the exchange’s servers. To address these issues, the NSE is reportedly proposing a ₹1,000 crore ($118 million) settlement with the Securities and Exchange Board of India (SEBI), aiming to resolve the longstanding dispute and pave the way for the IPO .
🌐 Global Standing and Market Position
With the current valuation, the NSE surpasses Nasdaq Inc. and narrows the gap with Deutsche Börse AG, which has a market value of $62 billion. The NSE is recognized as the world’s largest derivatives exchange by the number of contracts traded and ranks third in cash equities by the number of trades
🏦 Shareholding Structure
The NSE has approximately 2.5 billion shares outstanding in private markets. Around 64% of these are held by public investors, including local and foreign institutions and wealthy individuals
🔮 Future Outlook
The substantial increase in valuation and the resolution of regulatory issues signal a positive outlook for the NSE’s IPO, which could occur as early as this year. This development is poised to enhance India’s position in global financial markets and provide investors with new opportunities in the country’s largest equity-derivatives exchange.Moneycontrol
