NSE's Upcoming IPO: Should You Invest in Unlisted Shares Now?
NSE pre-IPO window to close soon with filing weeks away. Can buying unlisted shares now make you good money?
The Economic TimesImage: The Economic Times
The National Stock Exchange (NSE) is set to file its draft red herring prospectus (DRHP) soon, reigniting interest in its unlisted shares, currently priced between ₹1,950-2,050. While NSE is a strong financial entity, experts warn against assuming quick profits from pre-IPO purchases due to high valuations and potential market volatility.
- 01NSE shares are currently trading at ₹1,950-2,050, reflecting a valuation of approximately ₹5 lakh crore.
- 02Analysts caution that current unlisted prices may already incorporate significant optimism about the IPO.
- 03The exchange's valuation stands at nearly 48-50 times projected FY26 earnings of ₹10,300 crore.
- 04Investors are advised to focus on valuation and market conditions rather than rushing to buy shares due to the approaching DRHP.
- 05Historically, buying unlisted shares close to an IPO has not always yielded the best returns.
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The National Stock Exchange (NSE) is nearing its long-anticipated public listing, with plans to file its draft red herring prospectus (DRHP) by the second week of June. This has led to a surge of interest in NSE's unlisted shares, currently trading at around ₹1,950-2,050, valuing the company at approximately ₹5 lakh crore. While analysts recognize NSE's strength as India's largest stock exchange, they caution that the current unlisted prices reflect significant optimism about the IPO. Experts like Paresh Bhagat and Arpit Jain emphasize that the assumption of guaranteed profits from buying shares before the IPO may not hold true, especially if the IPO is priced lower than current market valuations. Additionally, historical trends indicate that investing in unlisted shares close to an IPO may present greater risks. Despite these concerns, NSE is viewed as a high-quality business with strong profitability and market dominance, making it an attractive option for long-term investors, albeit with caution regarding entry timing and valuation.
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Investors considering purchasing NSE shares may face significant financial implications depending on the IPO pricing and market conditions.
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