NSE Emerges as One of India’s Largest Unlisted Companies by Shareholder Count
The National Stock Exchange (NSE) has surpassed a significant milestone with its shareholder base exceeding 1 lakh investors, placing it among the largest unlisted entities in India in terms of retail and institutional ownership. This milestone is notable given that many listed companies in India do not boast such a vast investor community. Despite this growing shareholder count, the NSE’s initial public offering (IPO) remains stalled, awaiting final regulatory and statutory approvals after more than eight years of delay.
Highlights:
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NSE’s shareholder base exceeds 100,000, marking one of the largest in unlisted Indian firms.
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Exchange’s IPO process remains stuck for over 8 years.
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NSE’s FY25 consolidated net profit surged 47% to Rs 12,188 crore, underscoring strong financials.
Robust Profitability and Diverse Shareholder Composition
The NSE stands out not only for its vast investor base but also as a top-performing financial institution. The exchange reported a consolidated net profit of Rs 12,188 crore for FY25, reflecting a sharp 47% increase from the previous fiscal year. NSE’s profitability ranks it among the top 25 companies in India.
The shareholder base includes prominent institutional investors such as insurance giants LIC, GIC, New India Assurance, National Insurance Company, and Oriental Insurance. The State Bank of India (SBI) holds a notable stake of 3.23%. In addition, the NSE counts several foreign institutional investors, including the Canada Pension Plan Investment Board, Crown Capital, MS Strategic (Mauritius), TIMF Holdings, TA Asia Pacific Acquisitions, and Aranda Investments (Mauritius) Pte Ltd.
Retail participation remains strong, with approximately 34,000 retail shareholders owning shares valued up to Rs 2 lakh each as per the latest shareholding pattern for the quarter ending March 31.
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Significant institutional shareholders include LIC, GIC, SBI, and major foreign investors.
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Retail shareholder base includes ~34,000 investors with holdings under Rs 2 lakh.
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NSE’s market share and profitability place it among India’s top 25 profitable companies.
IPO Approval Hindered by Governance, Technology, and Litigation Concerns
The IPO filing process by NSE dates back to December 2016, yet the exchange remains unlisted due to regulatory hurdles. NSE shares are actively traded in the unlisted market, reflecting investor interest despite the listing delay.
In recent statements, SEBI Chairman Tuhin Kanta Pandey acknowledged ongoing discussions with NSE addressing critical issues including governance standards, technology infrastructure, litigation matters, and the ownership structure of clearing corporations. SEBI has highlighted these as prerequisites for granting an IPO clearance.
NSE has repeatedly sought a No Objection Certificate (NOC) from SEBI to proceed with the IPO, having submitted multiple requests in 2019, 2020, and 2024. SEBI’s February response outlined concerns which NSE has since addressed in a March appeal, but the final go-ahead remains pending.
Highlights:
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NSE IPO filing pending since December 2016, awaiting regulatory nod.
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SEBI cites concerns over governance, technology, KMP, clearing corporation ownership, and litigation.
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Multiple NOC requests filed by NSE since 2019, latest in March 2025.
Awaiting Regulatory Clarity to Unlock Listing Potential
The extended IPO delay has not dampened investor enthusiasm, as evidenced by the rising shareholder numbers and active secondary market trading of NSE shares in the unlisted space. However, the final IPO approval will hinge on NSE satisfactorily resolving SEBI’s concerns and obtaining a clear roadmap for listing.
The IPO, once approved, will mark a significant milestone for India’s largest equity bourse and potentially unlock value for its extensive shareholder community.
Highlights:
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NSE shareholders and market await clear IPO roadmap from SEBI.
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Resolution of governance and litigation issues is key to unlocking listing.
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Listing expected to significantly enhance transparency and market participation.
