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NSE IPO: Long-Term Potential Despite Near-Term Earnings Pressure, Says Centrum
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CNBC TV18•21-09-2026, 11:02
NSE IPO: Long-Term Potential Despite Near-Term Earnings Pressure, Says Centrum
- •Centrum Broking's VP Mohit Mangal remains positive on NSE's long-term outlook despite regulatory changes and near-term earnings pressure.
- •The NSE IPO closes on Monday, September 21, with valuations at the upper end of the price band comparable to BSE.
- •NSE maintains a dominant market share in cash (92-93%) and futures (monopoly), though it lost some share in index options (65%).
- •Regulatory headwinds and changes in bank guarantee norms are expected to impact earnings, but volatility could support premium turnover in H2 FY27.
- •Despite diversification, index options still contribute around 60% of NSE's revenue, making trading volumes and regulations crucial for its earnings.
Key Questions Answered
At the upper end of the price band of ₹1,785, the NSE is estimated to be valued at around 38 times FY28 earnings and 33 times FY29 earnings.
Recent regulatory changes have affected trading activity, with index options still accounting for around 60% of NSE's revenue despite a 17% decline in its average daily premium turnover in August.
NSE holds around a 92-93% market share in the cash segment, an almost monopoly position in futures, and about a 65% market share in index options based on year-to-date FY27 data.
