The NBFC holds an indirect stake in NSE via Stock Holding Corporation of India (SHCIL). At the end of the December quarter, SHCIL owned 4.4% in NSE. In the unlisted market, NSE shares are trading around Rs 2,100 per share. Going by that, SHCIL’s stake in NSE is worth around Rs 23,000 crore. IFCI owns 52% stake in SHCIL.
NSE IPO coming soon?
Last week, Sebi chief had said that it is in a very advanced stage of issuing the NOC (no-objection certificate) for NSE IPO, and that could happen as soon as this month itself. At another event on Thursday, he said Sebi has agreed in principle to NSE’s settlement application in the long-running unfair market access case.
He also said the government has approved a 2.5% stake dilution in the exchange and that a notification in this regard will be issued soon. The development is being seen as the strongest signal yet that the country’s largest stock exchange may finally move closer to an IPO.
The NSE has been seeking regulatory approval for its IPO for several years, following governance lapses and the co-location controversy that had come under SEBI’s scrutiny. The exchange had first filed its draft red herring prospectus (DRHP) in December 2016, but the process was delayed amid regulatory action related to allegations of preferential access to its algorithmic trading platform.
In August 2024, NSE reapplied to SEBI for a fresh no-objection certificate to proceed with its public issue. Subsequently, in October 2024, the exchange settled the Trading Access Point (TAP) architecture and network connectivity case by paying a penalty of ₹643 crore. The case pertained to alleged deficiencies in dealing with instances where certain high-frequency traders were found to be exploiting system access.
Pandey said NSE has since undertaken several corrective measures, including changes in senior management, restructuring of its board, strengthening compliance frameworks, and settling past regulatory matters.NSE has an unusually large shareholder base for an unlisted company. With around 1,77,807 shareholders, it is India’s largest unlisted company by number of investors. In the last few days, both prices and volumes of unlisted NSE shares have gone up. The stock commands a market capitalisation of around Rs 5 lakh crore in the unlisted space.
Besides IFCI, investors are also betting that the other stock exchange, BSE, could also see a valuation re-rating post NSE’s listing. BSE shares have rallied around 6% in the last one week.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
