NSE valuation doubles to $36 billion amid IPO speculation: Report

Unlisted shares of the world’s largest derivative exchange by contract volume are in high demand among wealth managers and their affluent clients eager to own a stake in the company, the sources said, speaking on condition of anonymity.

Recent transactions have seen these shares trading in the range of Rs 5,700 to Rs 6,500 ($68 to $78) each, significantly above previous levels.

The valuation could rise further in the coming months as the IPO plans progress, they added.

Trading of shares in privately-held firms usually occurs on specialized private platforms or through individual negotiations, making it difficult to ascertain the exact number of shares changing hands.

While the exchange is reportedly working towards completing the documentation for an IPO by early next year, the timeline could still be extended, the sources noted.

Earlier this month, the Securities and Exchange Board of India (SEBI) cleared NSE of any wrongdoing in a long-standing case of unfair market access, removing a significant obstacle for the exchange's public listing.

The case, dating back nearly a decade, involved allegations that brokerage OPG Securities Pvt. benefited from preferential access, leading to a six-month ban on NSE’s market activities and a financial penalty, the report said.

NSE, backed by prominent investors such as the Life Insurance Corporation of India and the Canada Pension Plan Investment Board, initially filed for an IPO in 2016.

However, the listing plans were delayed due to regulatory hurdles related to the market access case.

In May this year, private equity firm ChrysCapital Management Co., which holds a 4% stake in NSE, valued the exchange at around $17 to $18 billion during a $700 million continuation fund deal, the report said.

This recent surge in valuation reflects growing investor confidence in the company's prospects and the anticipation of its long-awaited public debut.