IPO-Bound NSE Valued Below Fair Price in Unlisted Market; Fair Value Seen at ₹4,000

The unlisted shares of the National Stock Exchange (NSE) are reportedly trading below their estimated fair value in the unlisted market. As it gears up for a potential initial public offering, investor attention is increasing due to its pricing gap and peer comparison.

Fair Value Outpaces Current Price Amid IPO Expectations

Currently trading around ₹2,250 in the unlisted market, NSE shares are gaining traction as they are seen significantly below their estimated fair value of ₹4,000. This estimate is based on an EPS of $49.2 and a sector price-to-earnings multiple of 83. Compared to domestic exchanges like BSE and MCX, NSE maintains a more favourable earnings profile, as per a research note from Axis Securities, reported by CNBC-TV18. 

Market Valuation Context and Peer Comparison

When compared to other domestic market players, NSE stands out due to its strong profitability and scale. Financial metrics indicate that despite trading at a lower price, its earnings performance remains robust, justifying a higher fair value. Global markets like the US may operate at lower multiples, but the Indian market's growth expectations provide a framework where higher valuation multiples are sustainable.

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Timeline for IPO Approval and Market Listing

NSE is expected to receive IPO approval by the third quarter of the current financial year, followed by official filing in the fourth quarter. The public issue is anticipated in the first or second quarter of the financial year 2027. The listing will take place on the BSE, potentially making it one of the largest public offerings in India.

Investor Attention Likely to Rise with Approaching Listing

The combination of strong earnings, market leadership, and an upcoming IPO is drawing attention from institutional and retail investors alike. The valuation gap between current trading levels and fair value could enhance appeal as momentum builds toward the exchange’s public listing.

Conclusion

NSE shares are priced below estimated fair value in the unlisted space as the exchange prepares for a historic IPO. The valuation gap, earnings strength, and listing expectations position it as a focal point in India’s evolving capital markets landscape.

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