NSE IPO Sparks Market Frenzy: Centrum Rates Exchange at 20 Percent Discount Compared to Rival BSE
The long-awaited Initial Public Offering (IPO) of the National Stock Exchange (NSE) has intensified market buzz, with analysis from Centrum Broking placing the exchange at a significant discount compared to its peer, BSE Ltd. The NSE's current unlisted valuation stands around ₹5 lakh crore, positioning it at a 15 to 20 percent discount to BSE on an earnings basis, according to the brokerage firm.The comments come after NSE filed its Draft Red Herring Prospectus (DRHP) with SEBI and BSE on Wednesday, officially setting the stage for one of India's largest public issues. This filing represents a major milestone for NSE, whose listing plans had faced regulatory roadblocks, particularly concerning co-location matters, for nearly a decade.
IPO Details and Estimated Issue Size
The impending IPO is structured entirely as an offer for sale, with existing shareholders collectively selling approximately 6 percent of the exchange's equity. Based on NSE’s unlisted market valuation estimated at around ₹5 lakh crore, the issue size is projected to exceed ₹30,000 crore.This planned listing is drawing considerable attention not only because of its immense scale but also because it will allow investors a direct listed peer comparison against BSE, whose shares have demonstrated robust gains this year. Meanwhile, BSE Ltd was trading at Rs 4,043 in late-morning trade on Thursday, up 1.1 percent for the day. Its market capitalization currently stood at ₹1.65 lakh crore and has gained 53.8 percent so far this year.
Comparing NSE and BSE in Financials
A direct look into the exchanges' financial health highlights significant differences across key metrics. For the fiscal year (FY26), NSE reported a revenue from operations of ₹16,601 crore, vastly outpacing BSE’s ₹4,834 crore.NSE also demonstrated higher profitability, reporting a profit after tax of ₹10,302 crore against BSE's recorded profit after tax of ₹2,487 crore for the same year. Transaction charges, a critical revenue stream for both exchanges, reached ₹13,057 crore for NSE in FY26 compared to ₹3,795 crore for BSE.
Institutional Interest Rises Ahead of NSE Listing
Mrugank Paranjape, a seasoned industry veteran and non-executive independent director at State Bank of India, commented that the NSE IPO possesses exceptional potential to attract long term institutional investors, including sovereign funds. He stated that it is "incredible" that the NSE IPO has the capacity to draw in foreign inflows equal to expected FCNR deposits.Paranjape affirmed that both Indian exchanges are vibrant and poised for success. Furthermore, he noted that SEBI had already completed necessary actions regarding derivatives, which bodes well for growing institutional participation following the NSE IPO filing.
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