NSE IPO: From derivatives dominance to dividends, Jefferies flags five key positives

Global brokerage Jefferies highlighted five key positives for NSE's long-awaited IPO, noting it has one of the strongest business models among global exchange operators. NSE accounts for nearly 70% of India's exchange revenues with over 90% market share across most trading segments, while its clearing arm NCL holds 88-91% share in cash and derivatives clearing, supported by equity options market growth at a 56% CAGR between FY20 and FY26. The exchange distributed around 74% of earnings as dividends in FY25 and about 85% in FY26, backed by investment assets worth roughly 288 billion rupees and limited capex of 3-3.5% of revenues. Shares of competitor exchanges BSE, MCX, and IEX fell up to 4% after the note; public-sector insurers will also sell approximately 1.1% stake in the offer for sale.