unlisted shares of National Stock Exchange ,NSE) Mumbai has seen a significant increase of more than 20% off-market transactions In the past two weeks, the trend of sideways movement that had lasted for almost two years was broken.
According to brokers, this growth can be attributed to increased demand from wealthy individuals retail investorsWith limited supply of shares. Some big investors have also backed out of their commitments to sell, leading to increased demand, brokers told ET.
The rally in shares of the two listed exchange operators, BSE and Multi Commodity Exchange of India, as well as value unlocking through the proposed public offering of National Securities Depository (NSDL), in which NSE holds 24% stake. Brokers said this has also contributed to the increase in prices.
Brokers report that the stock, which was trading around Rs 3,100-3,200 a month ago, has now moved into the range of Rs 3,800-3,900. However, it is important to note that these prices relate to transactions in the unlisted market and are not official figures.

At Rs 3,900 per share, India’s largest exchange NSE would be valued at Rs 1.93 lakh crore, or 25 times its trailing 12-month earnings.
In comparison, BSE shares have gained 220% in the last six months, while MCX shares have gained nearly 94%. Currently, both these exchanges are trading at 87 times and 348 times their trailing 12 month earnings respectively.

Sandeep Ginodia, managing director of Abhishek Securities, attributed the sharp rise in NSE share prices to significant demand from retail investors and non-fulfillment of sale commitments by some key investors.

After rising from Rs 1,800 in January 2021 to Rs 3,500 in December the same year, the stock remained stagnant around Rs 3,000 due to uncertainties around the initial public offering plan. Over the last one to two years, many significant institutional investors have sold part of their stake. nse share A total of Rs 1,860 crore worth of notes were exchanged at an average price of Rs 2,939 in the quarter ended September.
Narottam Dharawat of Mumbai-based Dharawat Securities said due to the strong surge in BSE and MCX stock prices, there has been a sudden increase in demand for NSE shares from both high-net-worth individuals (HNIs) and retail investors. Limited supply of shares and the listing of its sister company NSDL have also been important factors in increasing this surge.

India’s largest depository NSDL is expected to launch its maiden public offering with a valuation of Rs 11,000-12,000 crore in the next few months. NSE, which currently holds 24% stake in NSDL, will sell 9% of its shares.
For the six months to September 2023, NSE reported consolidated revenue growth of 25% to Rs 7,380 crore, along with an 11% rise in net profit to Rs 3,843 crore. The exchange claims profit margins of over 50%.
Read from ET Unlisted NSE stocks rose
However, buying NSE unlisted shares is not an easy task, as the stock exchange has imposed strict compliance measures like Know Your Customer (KYC), funding source verification and background checks of investors. Brokers say NSE takes time to approve such transactions.