NSE expected to price IPO at discount, raising investor concerns

The National Stock Exchange of India, the country’s dominant equities marketplace, is preparing to price its long-awaited IPO at a range that would leave many existing shareholders underwater. The expected band of ₹1,700 to ₹1,785 per share sits meaningfully below the ₹2,000 to ₹2,045 levels at which shares have recently traded in the unlisted market.

The numbers behind the repricing

Earlier estimates pegged NSE shares north of ₹2,000, with some unlisted market transactions occurring as high as ₹2,400 at historical peaks. The revised range represents roughly a 15% haircut from where shares recently changed hands privately, and more than 25% below the peak.

At the upper end of the new band, NSE would carry a valuation of approximately ₹4.42 lakh crore, or about 43 times the previous fiscal year’s earnings. The IPO itself is structured as a pure offer-for-sale of roughly 14.89 crore shares, representing around 5.5% of equity. That’s been trimmed from an earlier planned OFS of about 6%.

Total proceeds are expected to land around ₹24,300 crore. Because this is entirely an OFS, every rupee goes to selling shareholders rather than into NSE’s own treasury.

SEBI granted approval for the IPO process in early September 2026, with the offering tentatively scheduled for mid-September and a listing target of late September 2026.

Why the discount matters beyond NSE

This isn’t the first time the pattern has played out. Previous Indian IPOs, including NSDL and HDB Financial, saw unlisted premiums that ultimately exceeded final issue prices. Recent IPO trends across 2025 and 2026 show many listings performing below their issue prices after debut.

What drove the adjustment

The repricing appears rooted in cautious feedback from institutional investors during early conversations about the deal. The 43x earnings multiple at the upper price band apparently didn’t excite institutions enough at ₹2,000-plus. The reduction in OFS size from 6% to 5.5% suggests that selling shareholders are also recalibrating, choosing to part with fewer shares at the lower price rather than flood the market.

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