With the National Stock Exchange’s much-awaited initial public offering (IPO) expected to hit the primary market in the second half of September, investors seeking exposure to the exchange face a dilemma: buy its unlisted shares now or wait for the public issue?
NSE’s unlisted shares are currently trading at around Rs 2,015, according to Unlisted Arena data. The stock was trading at Rs 2,010 when NSE filed its draft red herring prospectus (DRHP), showing that the unlisted share price has remained largely unchanged since the filing.
NSE’s unlisted shares have traded between Rs 1,800 and Rs 2,150 over the past one year, well below the June 2025 high of Rs 2,590. The unlisted share price had fallen to around Rs 1,950 on July 28-29 before recovering to its current level of Rs 2,015.
At the current unlisted share price, NSE’s valuation is estimated at around Rs 4.99 lakh crore. The exchange, however, is seeking a valuation of as much as Rs 5.26 lakh crore ($55 billion) through its planned public offering, according to a Bloomberg report.
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The exchange was initially expecting approval from market regulator Securities and Exchange Board of India (Sebi) for its draft prospectus by early August. However, the timeline has been pushed back by about three weeks following changes to the list of selling shareholders, with SBI Capital Markets Ltd. being added.
Should you buy unlisted NSE shares or wait for the IPO?
Manan Doshi, co-founder of Unlisted Arena, said NSE’s stature as a bluechip asset and the anticipated size of the IPO could attract significant investor interest.“NSE inherently commands the stature of a bluechip asset. With an anticipated IPO size of roughly Rs 25,000-30,000 crore, the issue is likely to attract substantial investor interest. We expect the IPO pricing to be attractive, and if it is priced at such levels, it has the potential to garner one of the strongest responses the Indian primary market has witnessed,” Doshi said.
On the unlisted market, Doshi said pricing remains moderate, with participation largely coming from investors with a long-term horizon.
“Rather than speculating whether the IPO will be priced higher or lower than current rates, long-term investors are simply viewing the unlisted space as an opportunity that aligns with a healthy risk-reward framework and allocating capital accordingly,” he said.
Krishna Patwari, founder and MD of Wealth Wisdom India (WWIPL.com), however, said the case for buying in the unlisted market has become less compelling at current levels.
“With NSE’s unlisted shares currently trading at Rs 1,990-2,000, the discount that once made the unlisted market attractive has virtually disappeared. At these levels, applying for the IPO makes more sense than buying in the unlisted market now,” Patwari said.
He said NSE’s current valuation is around 48x earnings and 15x book value, making it richly valued, although its near-monopoly position in Indian market infrastructure provides a strong fundamental justification.
For investors considering an entry at current levels, Patwari said waiting for the IPO could be the more efficient option.
“The IPO could offer a better entry price, regulated allotment and listing-day liquidity. More importantly, shares purchased in the unlisted market will be subject to a six-month lock-in from the listing date, further reducing the advantage of buying before the IPO,” he said.
With the IPO expected as early as mid-September, Patwari said applying for the IPO makes more sense than buying NSE shares in the unlisted market at current prices.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)