NSE Pre-IPO Window Closes Soon; Analysts Warn Against Rush to Buy Unlisted Shares The National Stock Exchange (NSE) is nearing the final stages of its highly anticipated initial public offering (IPO), with the draft red herring prospectus (DRHP) expected to be filed by the second week of June. This development has reignited interest in NSE’s unlisted shares, which have been actively traded in the private market. However, analysts caution that investors should not treat the approaching IPO as a guaranteed opportunity for quick profits, emphasizing the risks of overpaying for shares at current valuations. NSE’s unlisted shares currently trade in the range of Rs 1,950-2,050 per share, implying a valuation of approximately Rs 5 lakh crore. This valuation already reflects significant optimism about the company’s potential listing. Paresh Bhagat, CIO of Veer Growth Fund, noted that while NSE remains one of India’s strongest financial franchises, investors should avoid buying unlisted shares solely because the DRHP filing is imminent. He highlighted that the exchange’s FY26 profit after tax of Rs 10,300 crore already supports a valuation of 48-50 times earnings, suggesting much of its strength is already priced into the market. Analysts warn that the IPO pricing could be lower than current unlisted valuations, potentially leaving investors with limited upside or even temporary losses. Bhagat explained that many companies deliberately price their IPOs below prevailing unlisted market prices to leave room for public market investors. If this occurs, buying NSE shares at current prices could result in a gap between the IPO price and the unlisted valuation, reducing potential returns.#nse #parash_bhagat #veer_growth_fund #arpit_jain #arihant_capital_markets
