NSE Files IPO Draft Papers, OFS Comprises 14.89 Crore Shares; LIC Not Among Sellers

India's largest bourse, the National Stock Exchange (NSE), has officially filed its Draft Red Herring Prospectus (DRHP) with the market regulator SEBI on June 17, 2026, marking a pivotal step towards a long-awaited public listing. This monumental Initial Public Offering (IPO) is structured entirely as an Offer For Sale (OFS) of up to 14.89 crore shares, representing nearly 6% of its paid-up capital, and could potentially become the largest public issue in Indian history, surpassing Hyundai Motor India's 2024 record. Notably, Life Insurance Corporation of India (LIC), the single largest shareholder with a 10.72% stake, has opted out of divesting its shares, signaling confidence in NSE long-term value creation potential. This long-delayed public debut comes after nearly a decade of regulatory hurdles, including the infamous Co-location Controversy, which the NSE finally settled in June 2025 by offering to pay over Rs 1,388 crore to SEBI. The pure OFS structure means the exchange itself will not raise fresh capital, with proceeds instead going directly to selling shareholders such as State Bank of India (SBI), the largest among them offering up to 2.48 crore shares, and other institutional players like Canada Pension Plan Investment Board and MS Strategic (Mauritius) Limited. This liquidity event is poised to generate significant returns for early investors, with some non-life insurers expected to realize an astounding 6,875-time return on their initial 32 paise per share investment from the 1990s. Despite reporting a 15.5% decline in profit to Rs 10,302 crore and a 3.1% revenue dip to Rs 16,601 crore in FY26, primarily due to moderated trading activity and regulatory-related items, NSE remains a critical infrastructure institution for India's rapidly expanding capital market. The focus now shifts to SEBI rigorous review process, which will scrutinize the DRHP before issuing observations, potentially clearing the path for the exchange to file its Red Herring Prospectus (RHP) and announce the price band. While no firm dates are set, market expectations point towards a listing before December 2026, with the issue being a 100% Book Built Issue. The IPO is expected to attract widespread investor interest, with specific allocations for Qualified Institutional Buyers (QIBs), Non-Institutional Investors (NIIs), and Retail Individual Investors (RIIs), further deepening and diversifying participation in India's robust financial landscape.