drashti The unlisted shares of the National Stock Exchange of India (NSE) have become the talk of the town. Over the past two weeks, the stock has skyrocketed nearly 60%, climbing from ₹1,500 to ₹2,400 in the grey market. Despite the sharp rise, analysts maintain that the stock remains undervalued when compared to its listed peers and believe there’s still room for substantial upside.
This dramatic price action is being fueled by a wave of retail interest, underpinned by growing anticipation around NSE’s long-awaited IPO. As the country’s largest stock exchange inches closer to going public, investors in the unlisted market are racing to get in early, driven largely by a growing fear of missing out. The sentiment is so strong that the NSE now boasts more than one lakh retail shareholders in the unlisted space—more than any other unlisted company in India.
Analysts following the unlisted equities market argue that, despite the recent price surge, NSE’s current valuation still presents an attractive opportunity. Simranjeet Singh Bhatia, Senior Equity Research Analyst at Almondz Global, emphasized that NSE continues to be a value buy. He pointed out that NSE is trading at a price-to-earnings (P/E) ratio of 70, which is still lower than that of its listed rival BSE, which trades at a P/E of 83. More importantly, NSE has shown robust financial growth over recent years.
Between FY22 and FY25, NSE’s revenue surged at a compounded annual growth rate (CAGR) of 33%, reaching ₹19,177 crore. Its net profit over the same period grew at a CAGR of 36%, touching ₹12,188 crore. This performance, paired with a solid dividend history, further strengthens its investment case in the pre-IPO market.
For the fiscal year 2024–25 alone, the NSE reported a net profit of ₹12,187.94 crore—a 47% year-on-year increase. Its consolidated revenue rose 16.7% to ₹19,176.83 crore. In its latest quarterly results, the exchange posted a year-on-year profit growth of 6.55%, bringing in ₹2,650.11 crore, with total income hitting ₹4,397 crore. Additionally, it declared a dividend of ₹35 per share, underlining its shareholder-friendly approach.
Market experts like Prashanth Tapse, Senior Vice President of Research at Mehta Equities, note that NSE’s shares are still trading at a discount compared to its listed peer, reinforcing the potential for listing gains once the IPO is finally launched. However, Tapse also warned that retail investors must be mindful of the inherent risks involved in trading unlisted securities. Volatility, liquidity constraints, and limited regulatory oversight are some of the challenges that come with investing in this space.
While enthusiasm around NSE’s IPO continues to mount, and the unlisted share price reflects that optimism, industry veterans suggest that the current valuation still offers significant long-term value. For now, the pre-IPO rally seems to be gaining momentum, but as always, the final verdict will rest with the markets when NSE officially lists. Until then, investor excitement—and the stock price—continues to climb.
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