Wire · AZ Weekly Post
Equirus CIO Ashutosh Tiwari expects NSE's initial public offering (IPO) to price below ₹2,000 per share, with a trailing price-to-earnings ratio near 40 times. He discussed the exchange's IPO after SEBI cleared it, stating it should be slightly lower than the current valuation estimate. Tiwari believes earnings at both NSE and BSE will grow once regulatory measures on options trading normalize.
He noted that the market share shift between the two exchanges has already occurred and is not a concern moving forward. NSE filed its draft red herring prospectus after years of delay, operating alongside BSE in India’s duopoly market for trading services. The exchange is currently valued at approximately ₹5 lakh crore, which Tiwari considers fair, with potential for further investor value if more capital remains.
NSE’s FY26 operating revenue was near ₹16,600 crore, with profit after tax around ₹10,300 crore, a 15% decline from the prior year, partly due to tightening around derivatives trading and BSE’s growth in the options segment. Tiwari attributed the drop to regulatory measures targeting retail options volumes, which have impacted trading activity. He expects volumes to recover within a few months as SEBI clarifications take effect.
Tiwari also commented on BSE, stating it looks attractive for a one-year horizon after its recent price correction. He mentioned Equirus tracks NSE and BSE but has not evaluated the Multi Commodity Exchange (MCX).
Source: CNBC TV18
