Can NSE IPO deliver long-term growth for high-risk investors?
In a bold move, the National Stock Exchange is set to initiate a major offer for sale, aiming to secure additional capital from its existing investors. This organization boasts a fully integrated platform focused on trading and settlement, where transaction fees are the primary source of income, supplemented by expanding services.
The National Stock Exchange of India (NSE) is set to raise up to ₹22,562 crore via an offer for sale (OFS) led by 23 investors, including major players like State Bank of India and Canada Pension Plan Investment Board. The exchange, which commands a substantial share of cash market and equity derivatives trading, aims to capitalize on rising retail investment participation.
However, NSE's revenue heavily relies on transaction charges, which accounted for 79% of FY26 operating revenue. This exposure to regulatory changes, competition, and market volatility makes the IPO potentially suitable for long-term investors with a higher risk tolerance. The company has diversified its revenue base through services like connectivity, colocation, data, and licensing, but trading activity remains concentrated among the top 10 trading members.
While NSE's revenue grew annually by 6% over the past three years, it fell by 3% year-on-year to ₹16,601 crore in FY26 due to a 4% decline in transaction-charge revenue. The exchange's Ebitda margin stood at 66.9% in FY26, outperforming BSE's 64% margin. Despite its dominance in the market, NSE's post-IPO price-earnings multiple of 42.9 is lower than BSE's 53, indicating a potentially attractive valuation for risk-tolerant investors.
Written by urgent.news from The Economic Times - Top News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
