Top Indian exchange’s valuation jumps 60%

A Bloomberg report quoting sources showed the valuation of India's biggest equity-derivatives bourse, the National Stock Exchange (NSE), has surged 60 per cent. This comes on hopes the bourse will go in for IPO soon.

The valuation of NSE in private markets has reached $58 billion, with demand far outstripping the supply of the bourse's unlisted shares.

Institutions and wealthy individuals have been purchasing the unlisted shares at a rapid pace in anticipation of an IPO. The share sale is expected as early as this year.

Recent trades have seen prices of the bourse jump up to ₹2,000 or $23 per share. That is a reflection of the stock's high demand relative to supply.

IPO bets boost NSE's valuation

NSE's perceived value jumped to $36 billion in September last year, more than doubling in just four months.

The latest rally coincides with the exchange's efforts to settle a longstanding legal dispute with the SEBI. The legal battle had held up NSE's listing plans for nearly a decade.

The NSE, backed by large investors like LIC of India and Canada Pension Plan Investment Board, first filed papers for an IPO in 2016.

Sebi's investigation into allegations that some high-speed traders gained unfair access to its co-location servers not only derailed the listing but also led to a six-month ban from capital markets.

Currently, the NSE has almost 2.5 billion shares outstanding in private markets. A potential IPO would place NSE’s $58 billion valuation above that of NASDAQ and would narrow the gap with Deutsche Börse's $62 billion market value.