The long-awaited initial public offering (IPO) of the National Stock Exchange of India (NSE) could take a significant step forward soon, with the country’s largest stock exchange expected to file its draft papers with market regulator Sebi on Wednesday.

Sources, speaking on condition of anonymity, told Business Today that NSE may file its draft papers for the IPO on Wednesday, with SBI and other public sector players likely to sell their stake. The IPO of NSE is said to be entirely an offer-for-sale (OFS).

To recall, The New India Assurance Company holds a 1.42 per cent stake in NSE, while IFCI, a public sector non-banking financial company, holds a 52 per cent stake in Stock Holding Corporation of India Ltd, which in turn owns a 4.4 per cent stake in NSE.

NSE is currently trading in the unlisted market at around Rs 1,950-2,050 per share, implying a valuation of roughly Rs 5 lakh crore. If the public issue goes through, it would place the exchange among the most valuable listed financial institutions in India.

The proposed IPO is expected to raise more than Rs 20,000 crore and will be structured entirely as an offer for sale. Under this structure, NSE will not receive any proceeds from the issue. Instead, existing shareholders will sell part of their holdings and receive the sale proceeds.

The NSE IPO is expected to be one of the most closely watched listings in the Indian capital markets. Given NSE’s market leadership, strong cash-generating capabilities, high operating leverage, and dominant share in the exchange business, the company is well-positioned to command a premium valuation, said Piyush Jhunjhunwala, Founder & CEO, Stockify.

'While strong demand is anticipated, institutional investors will focus on whether the valuation adequately balances the scarcity value of the asset with its future growth potential. Sustainable post-listing performance will ultimately hinge on rational pricing rather than market exuberance," he said.

The filing would mark a major milestone for one of India’s most closely watched public offerings. The NSE IPO has been delayed for years because of regulatory hurdles and legacy legal issues, although recent developments have improved the prospects for the listing.

The number of shareholders rose to 1,59,394 in June 2025 from 39,201 in March 2025 and increased further to 1,86,481 by December 2025, driven largely by heightened activity in the unlisted market.