NSE Raises $2.3B at 42.9x P/E, Outpacing Nasdaq Valuation
India's National Stock Exchange secured 5.7x oversubscription, valuing it above U.S. peers despite a premium price-to-earnings multiple.
Key points
- NSE raised $2.3 billion in its IPO, receiving bids worth over $10 billion for 505.81 million shares.
- The exchange is valued at 42.9x earnings, significantly higher than Nasdaq's 23.6x multiple.
- NSE holds a 93% share of India's cash market and nearly 100% of equity futures trading.
India’s National Stock Exchange (NSE) has closed its $2.3 billion initial public offering with bids exceeding $10 billion, reflecting intense demand from institutional and high-net-worth investors. The listing is the largest in India this year and the second-largest in the country’s history, trailing only the 2024 Hyundai Motor India offer.
The exchange secured subscriptions for 505.81 million shares, representing a 5.7 times oversubscription of the 88.64 million shares offered. NSE also raised 67.5 billion rupees ($704 million) from anchor investors, including the Monetary Authority of Singapore and the Life Insurance Corporation of India, according to CNBC reports.
NSE commands premium valuation over US peers
At the upper end of its price band, NSE trades at a price-to-earnings ratio of 42.9 times based on earnings per share for the fiscal year ending March 2026. This multiple significantly exceeds the valuation of major U.S. exchange operators, with Nasdaq trading at 23.6 times and Intercontinental Exchange at 21.9 times.
The premium reflects the market’s assessment of NSE’s dominant position in the Indian capital markets. The company holds a 93% share of India’s cash market and nearly 100% of equity futures trading, alongside 75% of equity options trading, as detailed in its IPO filing.
Retail investor growth drives long-term demand
India’s financial landscape is shifting toward greater equity participation, with the share of equities and mutual funds in household savings rising to 15.2% in the fiscal year ending March 2025. This represents a substantial increase from the 2% recorded in the fiscal year ending March 2012, indicating a broadening retail base for exchange services.
Industry analysts note that NSE’s asset-light model supports high margins and cash generation, providing a structural advantage as financialization increases. The exchange benefits from a market cap of approximately $5.1 trillion, making it a central hub for global and domestic capital flows in one of the world’s top ten equity markets.
