26 February 2026 Punjab Khabarnama Bureau : New Delhi, India — The National Stock Exchange (NSE) has taken a significant step toward launching its long‑awaited initial public offering (IPO), sending out invites to investment banks to pitch for roles in what could become one of India’s largest ever share sales. The move marks renewed momentum in reviving a process that has been delayed for years due to regulatory and legal hurdles.
Recently, the exchange issued a request for proposals (RFP) to select investment banks to lead and advise on the IPO. The plan is to finalize adviser appointments by mid‑March 2026. These advisers will include lead bankers, legal counsel, and other intermediaries central to structuring and executing the public offering.
NSE has also formed a committee this month to oversee the listing process and appointed an independent adviser to manage and coordinate the selection of banks and other intermediaries needed for the IPO.
A Long‑Delayed IPO Nears Reality
The exchange’s IPO has been in limbo for more than eight years, with regulatory red tape and legal challenges repeatedly slowing progress. NSE first filed its draft IPO prospectus in late 2016, but the process was delayed due to scrutiny by the Securities and Exchange Board of India (SEBI) and litigation tied to past market practices.
Recent developments suggest that NSE has secured regulatory clearance to move forward, clearing a major hurdle and enabling preparations for the IPO to restart. With regulatory uncertainty easing, the exchange has stepped up efforts to choose lead bankers who will drive the IPO plan.
Industry analysts say this renewed push reflects the growing importance of India’s capital markets and the potential for a high-profile listing at a time when economic indicators and investor sentiment show resilience. Listing the nation’s largest stock exchange on its own platform would also be a landmark event for domestic financial markets.
IPO Mechanics and Expected Size
Reports suggest that the IPO is expected to be structured as a pure offer for sale (OFS), meaning existing shareholders will divest part of their holdings rather than the company issuing new shares. Based on valuations in the unlisted market, the offer could raise around ₹22,700–₹23,000 crore.
Under this structure, shareholders such as Life Insurance Corporation of India (LIC), Temasek Holdings, State Bank of India (SBI), and other institutional investors may offer part of their stakes in the exchange. The expected divestment is likely to be in the range of 4% to 4.5% of NSE’s total equity.
Details such as the official issue price, final size, and exact timing of the IPO have not yet been released by the exchange. Market participants note that final pricing and structure will depend on ongoing valuations in both the unlisted market and prevailing conditions in public capital markets.
Why the IPO Matters
If successfully executed, the NSE IPO would be among the largest in India’s corporate history and could reshape the country’s capital‑raising landscape. The exchange is the backbone of Indian equity markets, handling the majority of cash trades, derivatives contracts, and investor activity. Its listing would bring a major institutional player into public ownership and offer retail and institutional investors a rare opportunity to buy into the platform that underpins India’s financial markets.
The listing could also enhance transparency and corporate governance for the exchange itself. Public ownership often comes with heightened regulatory oversight and accountability, potentially boosting investor confidence in India’s capital markets infrastructure.
Challenges and Market Reaction
Despite the renewed momentum, analysts caution that several hurdles remain before the NSE IPO comes to market. The regulatory environment, though more cooperative now, still requires clearance, including the submission and approval of a Draft Red Herring Prospectus (DRHP) to SEBI, which will detail the issue’s terms and financials. Preparing the DRHP, engaging legal approvals, forming a syndicate, and conducting roadshows to market investors will all take several months.
Additionally, macroeconomic factors such as global capital flows, interest rates, and market volatility could influence investor appetite for such a large offering. Any major shifts in market sentiment leading up to the listing could impact the IPO’s success.
However, experts point out that the Indian stock market has shown relative strength, supported by strong participation from domestic investors and growing interest from foreign investors.
Broader Impact and Expectations
The potential NSE listing carries symbolic weight as well. As India’s leading exchange, bringing it into the public sphere can help further integrate India’s capital markets with global financial systems. Analysts also believe that the success of a marquee IPO could spur additional listings from other major institutions and set a positive tone for the broader IPO pipeline.
Industry observers expect that once adviser selection is complete by mid‑March, the pace of preparation will accelerate, with a potential IPO launch window later in 2026, subject to regulatory and market conditions.
For now, the focus is on the next few weeks as investment banks make their pitches and NSE moves closer to finalizing the team that will take this landmark IPO forward.
Summary:
The National Stock Exchange has invited investment banks to pitch for a long-delayed IPO that could raise around ₹23,000 crore, marking a major step toward one of India’s largest listings.