The upcoming initial public offering (IPO) of the National Stock Exchange (NSE) is generating buzz, yet its unlisted shares have seen a decline from a peak of ₹2,075 in January to approximately ₹1,885. This drop reflects a shift in investor sentiment towards more cautious valuation practices rather than speculative pre-listing momentum. The NSE's IPO, anticipated to raise over ₹20,000 crore through an offer-for-sale (OFS), will not generate new capital for the exchange, as all proceeds will benefit existing shareholders looking to exit. A significant regulatory condition restricts participation to shareholders who have held fully paid-up NSE shares continuously for at least one year prior to the filing of the draft papers, effectively locking out new investors. This has led to a cooling of speculative buying in the unlisted market. Analysts suggest that the decline in unlisted prices is due to these eligibility restrictions, emerging valuation concerns, and a selective sentiment in the primary market. The NSE's expanding shareholder base, which grew from about 39,000 to over 1.8 lakh investors, adds complexity to the OFS process, requiring careful management of eligible sellers and participation assessment.