NSE investors brace for impact as grey market prices soar
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NSE investors brace for impact as grey market prices soar.

Growfast Securities and Credit Private Limited / Blog  / News  / NSE investors brace for impact as grey market prices soar.
06 Jun 2025

NSE investors brace for impact as grey market prices soar.

News
nse investors

The National Stock Exchange (NSE) is making headlines even before its highly awaited Initial Public Offering (IPO). In a surprising development, NSE’s unlisted shares have jumped nearly 40% in just one week, sharply reducing the discount compared to its rival, BSE Ltd.

Valuation Gap Narrows Between NSE and BSE

According to Sanat Mondal, Head of Private Markets at Sanctum Wealth, “NSE shares were trading at a 50% discount to BSE’s at least five to six months ago. In the past few weeks, the discount has narrowed to just 10–15%.”

  • NSE unlisted shares are now trading between ₹2,375 and ₹2,419.
  • This reflects a 48x price-to-earnings multiple based on FY25 earnings (UnlistedZone).
  • In comparison, BSE trades at a 64.2x multiple, according to Motilal Oswal Financial Services.

This narrowing valuation gap is largely attributed to reports of NSE exploring a ₹1,000 crore regulatory settlement with SEBI, a potential step forward in its IPO journey. However, the lack of a clear IPO timeline continues to be a concern for investors.

NSE’s Strong Fundamentals and Market Dominance

Despite the IPO uncertainty, NSE’s market leadership and profitability make it a compelling investment story:

  • Market Share: NSE commands over 90% of India’s cash and derivatives trading volumes.
  • Revenue Growth: Motilal Oswal expects 15% revenue CAGR and 22% net profit CAGR from FY24 to FY27, driven by F&O growth.
  • Profitability: Over 65% of NSE’s revenue converts into profit, primarily from the cash segment.
  • Shareholder Base: The number of unlisted shareholders has surged to over 1 lakh, up from 39,201 in March (Gennext Investrade).

Saurabh Rungta, CIO at Avendus Wealth Management, summarizes the sentiment well:
“With a strong moat and long-term growth potential, NSE could be a consistent compounder over time.”

Market Cap and Investor Demand on the Rise

The spike in demand has driven NSE’s market capitalization in the private market to ₹5.87 lakh crore, placing it ahead of blue-chip giants like ITC Ltd and Larsen & Toubro Ltd.

However, the limited availability of unlisted shares is creating scarcity, and investors fear under-allotment in the upcoming IPO.

What Retail Investors Should Know Before Entering the Private Market

While NSE’s performance is impressive—delivering nearly 230% returns over the last three years—experts caution that such returns are unlikely to continue post-IPO.

Here’s what retail investors should consider before entering the unlisted space:

Do Your Research

  • Understand the company, financials, and market sentiment thoroughly.
  • Use reliable sources to verify pricing and trading activity.

Liquidity Challenges

  • Unlisted shares are harder to sell compared to listed ones.
  • Be prepared for longer holding periods.

High Risk, High Reward

  • Unlisted investments come with less transparency and more volatility.
  • Prices can be manipulated in illiquid markets.

Growfast Securities: Your Trusted Partner in Unlisted Shares & Pre-IPOs

If you’re looking to tap into the private market and invest in high-potential stocks like NSE, Growfast Securities and Credit Pvt Ltd is your reliable partner. We buy and sell NSE unlisted shares, and also deal in other pre-IPO and unlisted stocks. With expert guidance, competitive pricing, and a strong industry reputation, Growfast ensures a smooth investment journey for both retail and HNI clients.

Final Takeaway

NSE’s growing momentum in the private market is fueled by strong fundamentals, potential regulatory progress, and investor interest ahead of its IPO. But investors—especially retail participants—should approach the unlisted space with caution, balancing opportunity with risk.

In the end, informed decisions, careful planning, and a long-term mindset are essential for navigating the evolving private market landscape.

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