Motilal Oswal on NSE: As the country’s leading stock exchange, the National Stock Exchange (NSE) can launch its IPO after a series of regulatory issues, Ashish Kumar, MD and CEO of the company said the company will receive NOC from SEBI, which will make a public offer within 8-9 months.
So, since the NSE IPO doesn’t look out of reach now, Motilal Oswal Financial Services shows it’s bullish on the counter ahead of the upcoming IPO. The broker lists the investment reasons mentioned below –
Advantages: Domestic brokers pointed out that the exchange accounts for 94% of cash stocks, 99% of stock index futures, and 88% of stock index options premiums.
Despite the tough environment, the performance was strong: In fiscal 2025, revenue from operating increased by 16% year-on-year to Rs 17,141, while net profit soared by 47% to Rs 12,188 crore. With further improvements in the fourth quarter, EBITDA and PAT edges remained 74% and 58% in fiscal 2025. Earnings per share (EP) and return on equity (ROE) also showed significant growth, reaching Rs 49 and 45% in FY25, respectively.
Future growth potential: The broker highlighted the strong prospects for NSE, noting that India has the lowest retail participation rate (about 3-4%) compared to the United States (more than 55-60%). It added that even a modest increase in this percentage translates into a considerable increase in NSE.
Simplify trading to reduce liquidity: Starting March 24, 2025, NSE has removed Isin Freeze, so investors can trade their shares as freely as other unsold shares. This reduces the stock transfer approval process from 3 months to one day.
The current regulations affect: After the implementation of the F&O regulations, NSE’s option premium ADTO (average daily turnover) reflects the recycling rate of the volume, which recovered from Rs 479,000 crore on February 25 to Rs 582,000 crore on April 25. Increased advanced ratios and increased average ticket sizes to mitigate the impact on Topline. Basically, traders moved to high non-promotional contracts. NSE may benefit from stable revenues and profit margins may improve due to costs
(Liquidation costs and SEBI costs) are expected to decrease.
IPOs may get SEBI clearance soon: The National Stock Exchange (NSE) may obtain clearance from SEBI by the end of July 2025 to submit an IPO prospectus by the end of July 2025. This is the proposed solution to resolve long-standing co-localization and dark fiber disputes.
Once SEBI issues a No Objection Certificate (NOC), it may take 4-5 months for NSE to prepare its Draft Red Herring Prospectus (DRHP), followed by another 2-3 months for regulatory review. If everything goes well, you can list NSE on Q4FY2026.
