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NSE IPO Priced Lower Than Rival BSE
19 Jun
Summary
- NSE's IPO is valued lower than its peer, BSE.
- BSE's derivatives segment sees significant revenue growth.
- NSE's core business shows slower growth compared to BSE.
The National Stock Exchange (NSE) is preparing for its initial public offering, with expectations that its valuation will be at a discount to its listed competitor, the Bombay Stock Exchange (BSE). This pricing reflects a perceived slower growth trajectory for NSE's core business activities.
In contrast, BSE is demonstrating robust financial performance. Its derivatives segment has experienced substantial revenue increases, more than doubling to ₹1,127.9 crore in the March 2026 quarter. This surge, coupled with an 87% rise in transaction income to ₹3,795 crore, is driving BSE's premium market valuation.
While NSE's operating revenue declined by 3.1% to ₹16,601.3 crore and derivatives revenue fell by 3.7%, BSE's operating revenue saw a significant 63.5% increase to ₹4,834 crore in FY26. BSE's net profit also shot up by nearly 89% to ₹2,497 crore, while NSE's profit dropped by 15.5% to ₹12,187.6 crore.
Despite these growth differentials, both exchanges command higher P/E multiples compared to their global counterparts, with NSE's P/E around 49 and BSE's around 67, versus global exchanges trading between 21 and 38.
