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NSE Selects Merchant Bankers, IPO Push Resumes

  //stocks-investing.news-articles.net/content/202 .. e-selects-merchant-bankers-ipo-push-resumes.html
  Published in Stocks and Investing on Thursday, March 12th 2026 at 9:39 GMT by reuters.com
      Locales: Maharashtra, INDIA

MUMBAI, March 12, 2026 - The National Stock Exchange of India (NSE) has taken a significant step forward in its long-delayed Initial Public Offering (IPO), selecting 20 leading merchant bankers to advise on the process. This announcement, confirmed by a source familiar with the matter today, signals a renewed push for what is anticipated to be one of the largest IPOs in Indian history.

The selection follows a rigorous competitive bidding process, drawing interest from major global and domestic investment banks. While the NSE has been contemplating an IPO for over a decade, numerous regulatory hurdles and market conditions have previously led to postponements. Today's news provides the strongest indication yet that the exchange is actively preparing for a public listing.

A Long and Winding Road to IPO

The NSE's journey towards becoming a publicly listed entity has been anything but straightforward. Originally planned for 2017, the IPO faced delays stemming from regulatory investigations related to co-location facilities and algorithmic trading. These concerns revolved around allegations of unfair access provided to certain brokers, prompting scrutiny from the Securities and Exchange Board of India (SEBI). Resolving these issues and implementing robust governance structures proved to be a lengthy process.

Furthermore, market volatility, including the global economic slowdown in 2019 and the more recent impacts of geopolitical events, have contributed to the repeated deferrals. The NSE management has consistently stated its commitment to launching the IPO only when market conditions are conducive and a fair valuation can be achieved.

Billions on the Table: Expected IPO Size and Implications

While the precise valuation and the number of shares to be offered remain undisclosed, analysts estimate the IPO could raise several billion dollars. Some projections place the potential fundraising exceeding $3 billion, potentially rivalling or even surpassing the IPO of Coal India in 2010, which raised approximately $3.45 billion. The final valuation will depend on factors such as prevailing market sentiment, the NSE's financial performance, and investor demand.

The IPO is expected to significantly impact the Indian financial landscape. A successful listing will not only provide the NSE with access to capital for future growth and innovation, but also set a benchmark for other exchanges and financial institutions considering similar moves. The influx of capital into the market is also anticipated to boost overall investor confidence and liquidity.

Who Made the Cut? The Role of Merchant Bankers

The selection of 20 merchant bankers indicates the scale and complexity of the IPO. These financial institutions will play a crucial role in various aspects of the listing process, including due diligence, valuation, drafting the prospectus, marketing the IPO to investors, and ultimately managing the share offering.

Although the names of the shortlisted banks haven't been officially released, industry sources suggest a mix of prominent domestic players like ICICI Securities, HDFC Bank, and Axis Capital, alongside international investment banks such as Goldman Sachs, Morgan Stanley, and JP Morgan are likely to be included. The competitive nature of the bidding process suggests that only the most experienced and highly-rated investment banks were selected.

Looking Ahead: Timeline and Potential Challenges

With the merchant bankers now onboard, the next phase will involve finalizing the draft red herring prospectus (DRHP) and submitting it to SEBI for approval. The DRHP will provide detailed information about the NSE's business, financial performance, and future prospects. Assuming a smooth regulatory review process, the IPO is tentatively scheduled for the second half of 2026, though this timeline remains subject to change.

Despite the positive momentum, several challenges remain. Maintaining market stability in the face of global economic uncertainties, achieving a fair valuation that satisfies both the NSE and investors, and ensuring a successful book-building process will be crucial for a successful IPO. The scrutiny surrounding the initial delays also means the NSE will need to demonstrate a strong commitment to transparency and good governance throughout the process. However, the appointment of these merchant bankers represents a pivotal moment, signaling a real prospect of the NSE finally taking its place among the publicly listed companies in India.