Equity Long-Short

Mo Aziz

Equity Capital Markets

National Stock Exchange of India / Equity Capital Markets

National Stock Exchange of India (NSE IN)

<ul>
<li>India's exchange monopoly is being sold at ₹1,785 when its own unlisted shares cleared ₹1,985 last week — and the state sellers trimmed their lines because they know it.</li>
<li>Only 5.1% of NSE floats until 22 March 2027. Then 2.35bn shares, held at a median cost under ₹5, become saleable at forty times earnings.</li>
<li>The state has throttled NSE's options franchise five times in 22 months. Cash turnover never flinched. We initiate BULLISH, 12-month Fair Value ₹2,000.</li>
</ul>


India's exchange monopoly is being sold at ₹1,785 when its own unlisted shares cleared ₹1,985 last week — and the state sellers trimmed their lines because they know it.
Only 5.1% of NSE floats until 22 March 2027. Then 2.35bn shares, held at a median cost under ₹5, become saleable at forty times earnings.
The state has throttled NSE's options franchise five times in 22 months. Cash turnover never flinched. We initiate BULLISH, 12-month Fair Value ₹2,000.


NSE India IPO: A Monopoly Sold 10% Below Its Own Private Market. Subscribe, Then Buy the Mar Unlock

Global Healthcare Analyst

Tina Banerjee

<ul>
<li>National Stock Exchange is launching India IPO to raise nearly INR 12.6B. They operate a vertically integrated stock exchange offering integrated platform for trading, clearing, listing, and other services.</li>
<li>In Q1FY27, NSE revenue increased by 9.5% to INR 52.5B, driven by increase in transaction charges. Net profit rose 11% to INR 31.2B with net margin down 150bps to 59.4%.</li>
<li>Though, the valuation seems slightly pricey, the intrinsic growth opportunity that comes from the breadth of their offerings, operational scale and profitability, makes this offering a good long-term bet.</li>
</ul>


National Stock Exchange is launching India IPO to raise nearly INR 12.6B. They operate a vertically integrated stock exchange offering integrated platform for trading, clearing, listing, and other services.
In Q1FY27, NSE revenue increased by 9.5% to INR 52.5B, driven by increase in transaction charges. Net profit rose 11% to INR 31.2B with net margin down 150bps to 59.4%.
Though, the valuation seems slightly pricey, the intrinsic growth opportunity that comes from the breadth of their offerings, operational scale and profitability, makes this offering a good long-term bet.


National Stock Exchange IPO: Option To Cash Me If You Can, On The Bourses

IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

<ul>
<li>
<a href="https://www.smartkarma.com/entities/national-stock-exchange" target="_blank" data-smartkarma-citation="entities:23751:1" rel="noopener">National Stock Exchange (NSEIN IN)</a>, India's largest stock exchange, aims to raise up to US$2.4 billion through an IPO at a price range of Rs1,700 to Rs1,785.</li>
<li>I previously discussed the IPO in <strong><em><a href="https://www.smartkarma.com/insights/national-stock-exchange-of-india-ipo-the-investment-case" target="_blank" data-smartkarma-citation="insights:267423" rel="noopener">National Stock Exchange of India IPO: The Investment Case</a></em></strong>. </li>
<li>In this note, I present my forecasts and valuation. My analysis suggests that NSE is fairly valued at the IPO price range. Therefore, I would pass on the IPO.</li>
</ul>



National Stock Exchange (NSEIN IN), India's largest stock exchange, aims to raise up to US$2.4 billion through an IPO at a price range of Rs1,700 to Rs1,785.
I previously discussed the IPO in National Stock Exchange of India IPO: The Investment Case. 
In this note, I present my forecasts and valuation. My analysis suggests that NSE is fairly valued at the IPO price range. Therefore, I would pass on the IPO.


National Stock Exchange of India IPO: Valuation Insights

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Index Rebalance

National Stock Exchange of India / Index Rebalance

<ul>
<li>
<a href="https://www.smartkarma.com/entities/national-stock-exchange" target="_blank" data-smartkarma-citation="entities:23751:1" rel="noopener">National Stock Exchange (NSEIN IN)</a> is looking to raise about US$2.4bn in its upcoming India IPO.</li>
<li>NSE operates electronic platforms for trading equities, derivatives, currencies, and debt securities, also earning revenue from clearing and settlement services, market data, index licensing, listing fees, connectivity, and technology services.</li>
<li>We have looked at the company’s past performance and valuations in our previous note. In this note, we will talk about the index impact, or lack thereof.</li>
</ul>



National Stock Exchange (NSEIN IN) is looking to raise about US$2.4bn in its upcoming India IPO.
NSE operates electronic platforms for trading equities, derivatives, currencies, and debt securities, also earning revenue from clearing and settlement services, market data, index licensing, listing fees, connectivity, and technology services.
We have looked at the company’s past performance and valuations in our previous note. In this note, we will talk about the index impact, or lack thereof.


Aequitas: NSE IPO -Index Flows Won’t Help in the near Term but Will Pickup Later

<ul>
<li>
<a href="https://www.smartkarma.com/entities/national-stock-exchange" target="_blank" data-smartkarma-citation="entities:23751:1" rel="noopener">National Stock Exchange (NSEIN IN)</a> is looking to raise about US$2.4bn in its upcoming India IPO.</li>
<li>NSE operates electronic platforms for trading equities, derivatives, currencies, and debt securities, also earning revenue from clearing and settlement services, market data, index licensing, listing fees, connectivity, and technology services.</li>
<li>We have looked at the company’s past performance in our previous note. In this note, we will talk about valuations.</li>
</ul>



National Stock Exchange (NSEIN IN) is looking to raise about US$2.4bn in its upcoming India IPO.
NSE operates electronic platforms for trading equities, derivatives, currencies, and debt securities, also earning revenue from clearing and settlement services, market data, index licensing, listing fees, connectivity, and technology services.
We have looked at the company’s past performance in our previous note. In this note, we will talk about valuations.


Aequitas: NSE IPO - Digestible Valuation, Given Its Dominance

India

National Stock Exchange of India Ltd. provides securities exchange and market infrastructure services. The Company offers trading, clearing-related services, market data, indexes, listings, and investor education. The company serves investors, brokers, listed companies, financial institutions, and market participants in India.

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National Stock Exchange of India (NSE IN)

National Stock Exchange IPO: Option To Cash Me If You Can, On The Bourses

National Stock Exchange is launching India IPO to raise nearly INR 12.6B. Though, the valuation seems slightly pricey, the intrinsic growth...

Tina Banerjee

National Stock Exchange of India IPO: Valuation Insights

National Stock Exchange, India's largest stock exchange, aims to raise up to US$2.4 billion. In this note, I present my forecast and valuation.

Arun George

Aequitas: NSE IPO -Index Flows Won’t Help in the near Term but Will Pickup Later

National Stock Exchange (NSEIN IN) is looking to raise about US$2.4bn in its upcoming India IPO. In this note, we talk about the index flows or...

Sumeet Singh

Aequitas: NSE IPO - Digestible Valuation, Given Its Dominance

National Stock Exchange (NSEIN IN) is looking to raise about US$2.4bn in its upcoming India IPO. In this note, we talk about valuations.

Sumeet Singh

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52-week Range

Market Cap (USDm)

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NSE India IPO: A Monopoly Sold 10% Below Its Own Private Market. Subscribe, Then Buy the Mar Unlock

NSE sells 5.1% of India's exchange monopoly 10% below its own private-market price. Subscribe at ₹1,785, FV ₹2,000, and buy the 22 March 2027...

Mo Aziz

National Stock Exchange IPO: Option To Cash Me If You Can, On The Bourses

National Stock Exchange is launching India IPO to raise nearly INR 12.6B. Though, the valuation seems slightly pricey, the intrinsic growth...

Tina Banerjee

National Stock Exchange of India IPO: Valuation Insights

National Stock Exchange, India's largest stock exchange, aims to raise up to US$2.4 billion. In this note, I present my forecast and valuation.

Arun George

Aequitas: NSE IPO -Index Flows Won’t Help in the near Term but Will Pickup Later

National Stock Exchange (NSEIN IN) is looking to raise about US$2.4bn in its upcoming India IPO. In this note, we talk about the index flows or...

Sumeet Singh

Aequitas: NSE IPO - Digestible Valuation, Given Its Dominance

National Stock Exchange (NSEIN IN) is looking to raise about US$2.4bn in its upcoming India IPO. In this note, we talk about valuations.

Sumeet Singh