The governing board of the National Stock Exchange (NSE) on Friday approved plans to launch an initial public offering (IPO), marking a major step toward listing India’s largest stock exchange nearly a decade after its first attempt. Alongside the IPO approval, the board also cleared the incorporation of a coal exchange subsidiary, expanding NSE’s footprint beyond capital markets.
As part of the IPO roadmap, the board approved the reconstitution of the IPO Committee, which will oversee all activities related to the public issue.
The committee will be chaired by non-independent director Tablesh Pandey, former Managing Director of LIC, and will include:
Public interest directors Srinivas Injeti, Mamata Biswal, Abhilasha Kumari, and G. Sivakumar
Managing Director and CEO Ashishkumar Chauhan
The IPO committee will spearhead the listing process, beginning with finalising the criteria for appointing merchant bankers and legal advisors, who will be responsible for preparing the draft red herring prospectus (DRHP).
Sources indicate that the formal IPO process will begin next week under the guidance of the committee.
Once the selection criteria are finalised, eligible merchant bankers will be formally briefed, triggering the pitch process—commonly referred to as a ‘beauty parade’.
According to people familiar with the matter:
NSE is targeting DRHP filing by end-March or early April
If September quarter audited numbers are used, the filing could happen by March-end
If delayed, the filing may move to April, using December quarter audited numbers
The proposed NSE IPO will be structured as an offer for sale (OFS) by existing shareholders.
Key details include:
NSE equity shares have a face value of ₹1
Around 4.5 percent of NSE’s equity may be offered
At the current unlisted market price of around ₹2,000 per share, the IPO size could be approximately ₹23,000 crore
NSE MD & CEO Ashish Kumar Chauhan recently stated that the exchange prefers an OFS but may consider a fresh issue only if the required dilution cannot be achieved through existing shareholders.
The IPO remains subject to regulatory approvals and market conditions, NSE said in a regulatory filing.
A critical milestone was achieved on January 30, when market regulator Securities and Exchange Board of India (SEBI) issued a No Objection Certificate (NoC) for the NSE IPO—an essential prerequisite for filing the DRHP.
NSE had earlier attempted to list in 2016, but the plan was withdrawn as regulatory probes intensified over alleged violations. The matter even reached the Delhi High Court, where both NSE and SEBI were named parties.
Moneycontrol had reported on February 3 that the NSE board was scheduled to meet on February 6 to clear the IPO process and constitute the IPO committee.
Separately, the board approved the incorporation of a coal exchange subsidiary, in line with the Ministry of Coal’s proposed Coal Regulations, 2025.
The proposed entity may be named:
National Coal Exchange
Bharat Coal Exchange
India Coal Exchange
It will operate as a regulated electronic trading platform for physical coal.
NSE plans to infuse up to ₹100 crore into the subsidiary to meet minimum net-worth requirements under the proposed rules.
NSE will initially hold at least 60 percent stake
Remaining shareholding will be offered to other shareholders
The subsidiary will require SEBI approval and licensing from the Coal Controller Organisation
The coal exchange aims to bring:
Greater transparency
Efficient price discovery
Standardised trading mechanisms
to India’s coal market, which currently operates through fragmented and opaque channels. NSE said the platform could also facilitate derivative products in the future, subject to regulatory approval.