NSE cuts IPO price range, giving up shot at India’s top listing

As per the latest business developments, National Stock Exchange of India Ltd. has lowered the price range for its long-awaited initial public offering and may shrink the stake on sale, according to people familiar with the matter, leaving the deal poised to decline short of becoming India’s biggest-ever stock-exchange debut.

The exchange is likely to price its shares at Rs 1,700 to Rs 1,785 apiece, below an earlier marketed range of Rs 2,000 to Rs 2,100, the people stated, asking not to be identified because the information is private. It may additionally reduce the stake being offered to around 5.5% of the total equity capital from the originally scheduled 6%, after some shareholders backed out of selling their stakes at the softer price, they stated.

At the top of the proposed range, the sale of a 5.5% stake would raise around Rs 24,300 crore, below the Rs 27,900 crore boosted by Hyundai Motor India Ltd in 2024 in the country’s largest-ever IPO. That would value NSE at as much as Rs 4.42 lakh crore, compared with a previously targeted a valuation of as much as Rs 5.26 lakh crore.

NSE’s decision to downsize the deal reflects unease over its valuation as expansion slows and regulators step up scrutiny of stock-market activity. Options trading, a key driver of the exchange’s success, has come under particular pressure, with the government doubling the transaction tax on some derivatives and proposing a elevated short-term capital upside tax.

Additionally denting the sentiment around the industry, Indian stocks have been chronic underperformers. The benchmark Nifty 50 index is down 10% this year, compared with a 25% gain in the MSCI Emerging Markets Index.

“The bar to win market participants over has moved elevated, not just for this IPO but for Indian equities more broadly after a year of underperforming many of its Asian peers,” stated Hebe Chen, a senior market market observer at Vantage Global Prime in Sydney. “Weaker returns and persistent foreign outflows mean they now need a much stronger valuation argument before putting fresh money to work. New listings in India can still attract capital, but market participants are becoming far more selective.”

At the upper end of the revised price range, NSE would still be valued at around 43.4 times earnings in the previous fiscal year, among the most expensive of the world’s 10 largest listed exchanges. At $46.6 billion, it would rank as the world’s eighth-largest stock exchange by market value.

The trimmed in the deal size additionally raises questions around a busy listings pipeline that includes Jio Platforms Ltd. progressing toward what could be one of the country’s biggest-ever IPOs. First-time share sales in the country have boosted almost $10 billion so far in 2026, compared with more than $20 billion in each of the previous two years that both set records, according to data compiled by Bloomberg.

NSE shares, which closed for off-market transfers on Sept. 8 ahead of the IPO, last traded at Rs 2,045 apiece, according to UnlistedZone.com, a platform that facilitates transactions in unlisted shares. The upper end of the IPO price range is around 13% below that level.

The firm is anticipated to announce the official price range the current week and open the IPO for subscription in the week beginning Sept. 14, the people stated. Deliberations are ongoing and details including the price range and timing could still change, the people stated.

A representative for NSE didn’t immediately respond to a request for comment.

The exchange filed its draft prospectus in June for an offering consisting entirely of secondary shares. India’s market regulator approved the IPO prospectus on September 4.

Morgan Stanley, Temasek Holdings Pte, State Bank of India, Stock Holding Corporation of India Ltd., General Insurance Corp. of India, New India Assurance Co. Ltd., National Insurance Co. Ltd. and Oriental Insurance Co. are among the shareholders selling stakes in the offering, according to the filing.