NSE mcap soars over Rs 5.30 lakh crore as IPO gains momentum

Unlisted shares of National Stock Exchange (NSE) have been on a roll, rallying 47 per cent to hit the Rs 2,200 mark on Tuesday in the unlisted market from levels of Rs 1,500 in just four trading days, taking the stock exchange's market value past the Rs 5.30 lakh crore-mark. 

The unlisted stock has been in the news ever since SEBI Chairman Tuhin Kanta Pandey on May 22 said that the most-anticipated initial public offer (IPO), in the past few years, was edging closer to receiving approval from the stock market regulator.

Marketmen tracking the unlisted market said the sharp move on the NSE counter was a result of a short squeeze, as demand shot up sharply compared to supply, forcing short sellers to buy shares and wind up their positions.

"Some deals with delivery dates of 10 to 20 days were executed with brokers by some institutions, but all of a sudden the unlisted stock soared after the announcement of results and dividend by NSE on 6th May 2025 and the institutions backed out of the deals, refunding the money. All the brokers who had sold it to their clients rushed to cover short positions. That has pushed the unlisted price higher," Hitesh Dharawat, Owner of Dharawat Securities, a Mumbai-based firm dealing in unlisted stocks.

Dharawat added: "Now parallelly there is IPO news, expiry date change news and 1 lakh shareholders... the momentum is building up. People are buying now, especially retail investors."

Pandey of SEBI on this past Thursday said all the outstanding NSE issues will be resolved and that the market regulator would move forward. He did not share a timeline but said "It will be done soon." Pandey added that NSE and SEBI were in talks and were looking to resolve the issues soon.

Market observers said it may take around six months for the issue to hit the market post the SEBI clearance.   

To be sure, NSE is the second largest stock exchange in the world in terms of number of trades (17.5 per cent market share in 2024) and the largest derivatives exchange in terms of contracts traded at 81.7 per cent.
As of March 31, NSE commanded 93.6 market share in the equity cash segment, 99.9 per cent share in equity futures, 87.4 per cent share in equity options, 93.6 per cent share in forex futures and 99.7 per cent share in forex options, based on premium turnover as of March 31, 2025.  

Recently, NSE's shareholder count crossed the 1,00,000 mark. For the financial year FY25, the stock exchange reported a 16 per cent YoY growth in revenue at Rs 17,141 crore and a 47 per cent surge in net profit at Rs 12,188 crore.

"NSE has always been a sought-after name in the unlisted space, thanks to its clear leadership, robust business model, and the critical role it plays in India's financial infrastructure. But with such healthy FY25 performance, demand from investors has only intensified—leading to this milestone of crossing 100,000 shareholders," InCred Money said on May 15.

Recently, Monsoon Pabrai's Drew Investment Management in a note said it is bullish on NSE. Pabrai is the daughter of Indian-American businessman and investor Mohnish Pabrai.

"We have identified a unique opportunity and have set up a Delaware Limited Partnership called the Drew Exchange LP to invest in only one company in India. The investment is the National Stock Exchange of India (NSE), the dominant stock exchange in India with a market capitalisation of approximately $50 billion with a trailing P/E ratio of 30. The company maintains exceptional operating margins above 60 per cent and carries virtually no debt," Drew Investment Management said in a note.

The National Stock Exchange (NSE) filed its IPO prospectus in December 2016. Despite not being publicly listed, its shares continue to be actively traded in the unlisted market. In March of this year, NSE sought a No Objection Certificate (NOC) from SEBI to proceed with its plans to list on the stock exchange.