NSE Set to Join India’s Top 15 Listed Companies by Market Value After IPO

The National Stock Exchange is set to arrive on the stock market with a valuation large enough to place it among India’s 15 biggest listed companies. Based on its IPO price band of ₹1,700-1,785 per share, the exchange would be valued at roughly ₹4.21 lakh crore to ₹4.42 lakh crore after the issue. 

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At the upper end of that range, NSE’s implied market capitalisation works out to ₹4,41,788 crore. Going by the market values cited in the report, that would put the exchange at around 12th place among India’s largest listed companies, narrowly behind Titan Company and ahead of Sun Pharmaceutical Industries. 

NSE’s Market Capitalization Will Determine Its Ranking 

At the point of comparison, Titan Company had a market capitalization of ₹4,44,736 crore, which is marginally higher than that of NSE at the highest price band of the IPO. Sun Pharmaceutical Industries had a market capitalization of ₹4,41,478 crore, making NSE the higher-ranked company. 

However, when the price goes lower in the price band, there will be changes in the ranking. With an IPO share price of ₹1,700, the market capitalization of NSE would be around ₹4,20,750 crore. This would place it just below Infosys with ₹4,21,123 crore while above Kotak Mahindra Bank with ₹4,16,807 crore. 

With an IPO share price of ₹1,700, NSE would still enter the stock market with a higher valuation compared to some companies like Adani Enterprises, Adani Ports, Adani Power, Maruti Suzuki and Axis Bank. 

₹22,562-Crore IPO Entirely an Offer for Sale 

The IPO has been priced between ₹1,700 and ₹1,785 per share and comprises an offer for sale of 12.644 crore shares. At the upper end of the band, the offering would be worth up to ₹22,562 crore. 

There is no fresh issue of shares. The entire IPO is an offer for sale by existing shareholders, which means the proceeds from the transaction will go to the selling shareholders rather than to NSE. 

The ₹22,562-crore size also puts the NSE offering among India’s largest public issues. 

Small Market Moves Could Change NSE’s Position 

The gap separating NSE from several companies around it in the market-cap rankings is relatively narrow. At the top end of the IPO band, for instance, the difference between NSE and Titan Company is less than ₹3,000 crore, while Sun Pharma’s market value is only slightly below NSE’s implied valuation. 

That means NSE’s exact position among India’s biggest listed companies may not remain fixed after its market debut. Changes in the share prices of NSE or the companies around it could alter the order. 

What is already clear from the IPO price range is the scale at which the exchange is preparing to enter the listed market. Whether valued at ₹4.21 lakh crore at the lower end or ₹4.42 lakh crore at the upper end, NSE would begin its life as a listed company firmly inside India’s top 15 by market capitalization.