Markets India

The National Stock Exchange (NSE) is considering reducing its initial public offering (IPO) size from ₹30,000 crore to ₹24,000-25,000 crore, according to sources. The revised size would represent approximately 5% of the exchange's paid-up capital, down from the previously planned 6%. The move would retain Hyundai Motor India's status as India's largest IPO until Jio Platforms' potential ₹37,000-crore offering, while aligning with SEBI's approval and avoiding the traditionally cautious Pitru Paksha period.

The NSE's proposed IPO, scheduled for launch in the third week of September 2026, would see the exchange sell around 5% of its paid-up capital, compared to the earlier 6% plan. The price band is set at ₹1,750, with anchor investor subscription expected on September 17. This adjustment would prevent the NSE from surpassing Hyundai Motor India's ₹27,870-crore IPO, which closed in October 2024, until Jio Platforms' anticipated ₹37,000-crore offering.

NSE's financial performance for the June quarter shows a 7% rise in profit after tax to ₹3,120 crore, though revenue from operations declined 8.2% to ₹4,560 crore. The revised IPO size may lower the financial burden on the exchange but could also temper its market valuation aspirations. The BSE will list NSE shares, potentially affecting its competitive dynamics with the NSE.

Key stakeholders include major shareholders like State Bank of India and Canada Pension Plan Investment Board, who are among those proposing to sell stakes. Investors may avoid new commitments during the Pitru Paksha period (September 26–October 15), which could impact IPO subscription rates. The NSE's decision to avoid this period reflects an awareness of traditional investor behavior patterns.

The revised IPO size also maintains the NSE's competitive positioning relative to Hyundai Motor India, while SEBI's approval on September 4, 2026, underscores regulatory confidence in the process. The timing of the IPO aims to finalize the process before the start of Pitru Paksha, balancing market readiness with investor sentiment.

The NSE plans to launch its IPO in the third week of September 2026, with anchor investor subscription on September 17 and listing in the fourth week. The exchange received SEBI's consent on September 4, 2026, and the IPO will avoid the Pitru Paksha period (September 26–October 15) to mitigate investor hesitation.

The NSE's decision to reduce its IPO size to ₹24,000-25,000 crore from ₹30,000 crore maintains Hyundai Motor India's largest IPO designation until Jio Platforms' potential ₹37,000-crore offering. While the revised size may temper market valuation aspirations, the timing avoids the Pitru Paksha period, balancing regulatory compliance with investor sentiment.

Topics: Financial Markets, IPO, Stock Exchange, Investment, Regulatory, Market Dynamics, Indian Economy, Corporate Finance

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Source: ET Markets