Ahead of IPO, Retail Investor Participation in NSE Surges

The National Stock Exchange (NSE) saw a sharp increase in retail participation during the June quarter, with the number of individuals holding unlisted shares worth up to ₹2 lakh rising to 1.46 lakh. As per news reports, this is a fourfold jump from 33,896 in the previous quarter, showing interest ahead of a possible IPO.

NSE’s total shareholder count grew to over 1.59 lakh from 39,201 in the March quarter, making it one of the most widely held unlisted companies in the country.

Changes in Shareholding Patterns

Investors with shareholdings above ₹2 lakh fell slightly from 354 to 343. However, their overall stake rose to 11.81% or 29.24 crore shares, up from 9.89% or 24.48 crore shares in the previous quarter. Retail investors below ₹2 lakh saw their combined stake dip to 9.52% from 9.84%.

As per news reports, NSE’s unlisted share price moved from ₹1,650 in early April to ₹2,250 by the end of June 2025. It currently trades around ₹2,225. The 36% price rise took place despite no confirmed IPO date.

FII Stake Down in Q1FY26

Foreign institutional investors cut their holdings during the quarter. Their combined stake declined to 26.95%, from 28% earlier. MS Strategic Mauritius sold shares worth ₹1,700 crore, reducing its holding from 1.58% to 1.26%. Mahogany Ltd sold shares worth ₹1,125 crore, bringing its stake to 3.73%.

Read More: IPO-Bound NSE Valued Below Fair Price in Unlisted Market!

Other Key Stakeholder Reductions

Crown Capital reduced its holding from 2.3% to 2.2%, offloading shares worth ₹562 crore. TIMF Holdings and TA Asia Pacific Acquisitions sold shares worth ₹326 crore and ₹225 crore,  respectively. As per news reports, NSE has submitted a settlement proposal of ₹1,400 crore to SEBI regarding the co-location matter. A decision on this is expected by the end of August  2025.

Conclusion

NSE continues to see a rise in shareholder numbers and trading interest in the unlisted market, while the IPO process remains under regulatory review.

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