Will NSE IPO Happen in 2025? 5 Important Things You Need to Know

The buzz surrounding the highly anticipated IPO of National Stock Exchange (NSE) refuses to fade.

Just days after SEBI chairman Tuhin Kanta made an important statement suggesting no obstacles remain for the IPO, NSE has filed for settlement in the pending co-location and dark fibre cases

Source: NDTV

According to reports, NSE has filed two applications with the SEBI to settle co-location and dark fibre cases and has offered to pay a massive Rs 1,300-Rs 1,400.

The amount offered by NSE to the SEBI is the highest amount offered by any entity till date in India to settle a case.

NSE Co-Location Scam: NSE’s co-location scam dates back to 2010. It involved certain brokers gaining unfair access to NSE’s trading systems through its co-location facility. Co-location basically allowed brokers to place their servers within or close to the exchange’s premises, which helped them get faster access to market data and order execution. 

When the allegations were out, SEBI imposed penalties on NSE, its former executives, and brokers. NSE was even barred from launching its IPO, and this event had a huge reputational damage.

Nevertheless, NSE’s recent efforts to address and resolve the co-location controversy mark a significant step towards restoring regulatory confidence — a move that clears the path for its much-awaited IPO.

Dark Fiber Case: Now this case dates back to 2015. The allegation here was firms used dark fiber to transmit data faster than competitors and created a more direct and low-latency route.

SEBI said that some brokers allegedly leased dark fiber lines between NSE and other locations without the knowledge or approval of NSE. Since the exchange is expected to offer a level playing field, SEBI’s 2022 order criticized NSE’s leadership for governance failures and imposed fines.

Now that NSE has proposed to settle the dark fiber case with a substantial payout, it signals a pragmatic resolution to a long-pending issue, further clearing regulatory hurdles.

NSE IPO: A Decade Long Wait

It’s almost a decade since NSE first filed its IPO in 2016 to raise Rs 10,000 crore. Since then, it has faced repeated delays due to regulatory issues, primarily the co-location scandal that raised serious concerns about its corporate governance. 

After SEBI rejected the draft prospectus in 2019, asking NSE to first resolve its issues, the company has taken several steps to address these concerns, including settling long-pending cases and improving its governance, technology, and compliance practices.

Amid all this, investor interest in NSE’s unlisted shares in the pre-IPO market remains robust. The share price of the unlisted NSE shares have spiked from Rs 1,800 in May 2025 to a lifetime high of Rs 2,300 at present.

NSE Unlisted Share Price – 1 year

Source: sharescart

Propelled by this rally, the market valuation of the company has surged past Rs 5.6 trillion, making it the fifth largest stock exchange in the world in terms of total market capitalisation.

The main question on everyone’s mind is whether the company will launch its IPO in 2025 or will it be delayed further?

All Eyes on NOC

According to reports, the long wait for the IPO may be nearing its end as market regulator SEBI is likely to give a No Objection Certificate (NOC) by the end of July 2025. 

The settlement process of the two cases we discussed above may be completed by mid-July. 

This matter is now handled by an internal committee and subsequently will go for approval of SEBI’s Market Regulation Department, which is responsible for regulation of exchanges, depositories and clearing corporations. The department will share its feedback on the settlement amount arrived based on the formula prescribed under the settlement rules. Thereafter, the matter will go to SEBIs High Powered Advisory Committee (HPAC) on Settlements.

After a go ahead from HPAC, a panel of whole-time members (WTM) will approve the settlement application. As co-location matters are currently pending before the Supreme Court, SEBI and NSE will make a plea before the Supreme Court, saying the issue is being resolved mutually, providing the details of the settlement terms. If allowed by the apex court the case will be withdrawn by SEBI.

The Process After that

NSE is likely to initiate the process for IPO immediately after the case is withdrawn and NoC is issued. 

While investors may be thinking that the company will come out with its IPO soon after this, it will actually take 4-5 months for preparing the draft red herring prospectus (DRHP), as every quarterly number will have to be audited numbers. And then, around 2-3 months may be required for routine queries to merchant bankers.

According to people close to the matter, NSE listing may be possible by the last quarter of the current financial year, if all that we discussed above goes smoothly.

Conclusion

Going by the latest timelines, the IPO of NSE is possible in 2025 but later in the year, around November or December.

If you’re looking to participate in India’s exciting growth story, NSE is definitely a platform worth considering.

While an IPO is on the horizon, it’s crucial to note that approval from SEBI is still pending.

Moreover, due diligence is essential. Wait for the full details of the potential IPO, including SEBI’s decision, valuation, and plans before deciding if NSE aligns with your investment goals.

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