drashti The capital markets are abuzz again, and this time, it’s not about a startup unicorn or a surprise listing. It’s about the big one—the long-awaited IPO of the National Stock Exchange of India (NSE). And while NSE isn’t ready to hit the runway just yet, merchant bankers are already polishing their shoes for what’s being dubbed a “beauty parade” — the high-stakes ritual where top firms pitch their IPO strategy to the exchange in hopes of winning the mandate.
The formal IPO process hinges on a significant regulatory green light: a No Objection Certificate (NOC) from SEBI. The stumbling block? A ₹1,400 crore settlement linked to the infamous co-location and dark fibre controversies — the same saga that’s kept the NSE’s IPO in limbo for years. On June 20, the exchange submitted a fresh settlement application, which is now under review by SEBI’s High Powered Advisory Committee (HPAC). If cleared, this could finally clear the path for NSE to list.
But merchant bankers aren’t waiting around. They’ve already begun knocking on NSE’s doors, armed with global benchmarking slides, valuation frameworks, and deal-making credentials. Everyone wants in on the listing that could define India’s financial decade. After all, this isn’t just another IPO. It’s the gatekeeper of India’s equity markets going public — a move that could potentially re-rate the sector itself.
In the background, the legal chess game continues. Although the Securities Appellate Tribunal (SAT) ruled in NSE’s favor earlier, SEBI has challenged the verdict in the Supreme Court. So technically, the case isn’t closed — but it’s close enough for the capital markets to start smelling blood (or at least big fees).
NSE has already deposited ₹1,100 crore with SEBI, with ₹300 crore returned in 2023 and ₹800 crore still parked. Another ₹600 crore may be added to finally wrap up the settlement at the agreed ₹1,400 crore amount. If all goes well, the Draft Red Herring Prospectus (DRHP) could be in shape within 4–5 months, with SEBI’s review and queries adding another 2–3 months. All signs point toward a potential listing in Q4 of FY26 — assuming no legal curveballs derail the process.
Until then, it’s all about the pitch. For merchant bankers, winning the NSE IPO isn’t just about prestige or deal volume — it’s about legacy. This is the kind of listing that ends up on CVs and case studies. For NSE, it’s about moving past a controversial chapter and stepping into the public spotlight with clean hands and a clear strategy.
So as the beauty parade begins, one thing is certain: the dance around India’s most awaited IPO has officially started — and the stakes are nothing short of historic.
