India's NSE to launch IPO amid investor caution over derivatives-fuelled growth

The National Stock Exchange of India (NSE) is set to launch its US$2.3 billion public offering on Wednesday, September 16, amidst investor caution over capital market firms due to declining derivative trading volumes. The IPO, which will be an offer-for-sale from existing private shareholders with no new capital being raised, aims to value the world's largest derivatives bourse at US$46 billion, despite being 15-20% lower than the valuation sought in pre-deal roadshows and 40% lower than private market sales in 2024.

The NSE's high exposure to derivatives, which make up 80% of its revenue and 60% of options trading, is both a competitive strength and a potential vulnerability due to regulatory changes and shifts in trading activity.

Brief written by urgent.news from Channel News Asia's own syndicated text. Machine-written — may contain errors; check the original before relying on it.