The National Stock Exchange (NSE) has finally kicked off its long-awaited initial public offering (IPO), setting the stage for what is likely to be the country’s largest equity capital raise. Regulatory concerns may have delayed the listing of India’s premier bourse, but that should not detract from the significance of the moment. Investors who have waited more than a decade for an exit are set to be richly rewarded for their patience. Where the shares are eventually priced remains to be seen. However, assuming a price of Rs 2,000 a share — roughly in line with grey-market indications — State Bank of India’s investment of about Rs 2 crore would be worth nearly Rs 5,000 crore.
Similarly, investor Radhakishan Damani’s 1.58% stake would be valued at around Rs 7,800 crore. The NSE is undoubtedly one of India’s greatest institution-building success stories. Its dominance across market segments — cash equities and equity futures and options — is overwhelming, with market shares exceeding 90% in several categories. Few would have predicted in 1994 that it would leave the century-old Bombay Stock Exchange so far behind. With India’s capital markets poised for sustained growth, investors are likely to place a premium valuation on the exchange.
The NSE’s listing is unlikely to be the last mega offering. Reliance Platforms is also expected to tap the market in the not-too-distant future. Together, the two IPOs could absorb as much as Rs 55,000-60,000 crore of investor savings. The ability of the market to host such large fund-raises — companies raised a record Rs 1.8 lakh crore through IPOs in FY26 — is testimony to the growing depth of India’s capital markets. Retail participation, both directly and through mutual funds, continues to rise steadily.
It is therefore no surprise that an increasing number of companies are not only choosing to list but are also able to command attractive valuations. Citi India estimates that IPO fundraising in calendar year 2026 could exceed Rs 2.35 lakh crore. Capital mobilisation on this scale is evidence of a flourishing equity culture. Companies such as Flipkart and PhonePe, which had slowed their listing plans amid geopolitical uncertainties, are also likely to revive those efforts.
The flip side of a buoyant primary market is that it inevitably competes with the secondary market for liquidity. Indeed, the flood of new paper over the past few years has been one reason for the relatively modest performance of listed equities. Yet domestic investors have shown remarkable resilience. Monthly inflows into systematic investment plans have averaged about Rs 30,000 crore over the past year, providing a stable source of capital. Domestic institutions, which invested a record Rs 8.5 lakh crore in equities in FY26, have remained enthusiastic participants in IPOs.
The more interesting question is whether foreign portfolio investors will return in a meaningful way for the next wave of offerings. India’s weight in global emerging-market funds has fallen to a five-year low of around 11%, while global investors remain close to a two-decade high underweight on Indian equities. This is despite valuations having moderated and moved closer to long-term averages. While overseas investors may remain selective in the secondary market, they could well be drawn to the IPO pipeline, particularly as many of the companies preparing to list operate in new-age and high-growth sectors. India may not yet have a listed artificial intelligence champion, but it has no shortage of compelling businesses capable of attracting global capital.