NSE IPO: The National Stock Exchange of India Ltd.’s valuation has reached $58 billion (Rs 5 lakh crore) in private markets, as anticipation builds for a potential listing of India’s largest equity-derivatives exchange, according to individuals familiar with recent deals.The shares have traded at prices up to Rs 2,000 ($23) recently, with demand significantly exceeding supply. The exchange’s valuation had previously increased twofold to approximately $36 billion by September.The unlisted shares have seen aggressive purchasing by institutional and high-net-worth investors, who expect an initial public offering possibly this year, two sources told Bloomberg.The valuation increase corresponds with NSE’s attempts to resolve an ongoing regulatory dispute with India’s securities watchdog, which has delayed its listing aspirations for nearly ten years. At $58 billion, NSE’s potential IPO valuation would surpass Nasdaq Inc.’s market value and approach Deutsche Boerse AG’s $62 billion valuation, according to Bloomberg data.Also Read | NSE IPO awaits SEBI’s nod: All you want to know about India’s most valuable unlisted companyThe National Stock Exchange maintains approximately 2.5 billion shares in private markets. According to its website, public investors, comprising local and foreign institutions, along with affluent individuals, hold 64% of these shares. The high interest in the exchange’s shares has created pressure on the limited available stock. According to two individuals familiar with the situation, at least three market intermediaries had to refund investors after failing to deliver shares, as some sellers withdrew considering the anticipated IPO.The exchange has intensified its focus on equity derivatives trading. NSE’s Chief Executive Officer Ashish Kumar Chauhan recently informed analysts and investors that the previous decline in market share compared to BSE Ltd. has “run its course”.NSE intends to submit an application to shift its derivatives contracts’ expiration from Thursday to Tuesday to regain its position against BSE.The NSE, supported by significant investors including Life Insurance Corp. of India and Canada Pension Plan Investment Board, initially submitted IPO documentation in 2016.
