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You can’t buy NSE on the stock market yet. But that hasn’t stopped investors from rushing into its unlisted shares, driving prices up nearly Rs 475 in just one day.
From regulatory green shoots to IPO rumours and a sudden broker squeeze, it’s the perfect cocktail for a frenzy in the grey market. But before you chase the rally, here’s what’s really happening.
What’s behind the surge?
On May 27, 2025, NSE’s unlisted shares skyrocketed from Rs 1,775 to Rs 2,250, a one-day jump of 27 per cent. Here’s what’s sending the stock into overdrive:
- IPO hopes get real: NSE has proposed a Rs 1,000 crore settlement with SEBI in the co-location case – the biggest overhang on its IPO plans since 2016.
- SEBI sounds positive: The regulator’s chief recently stated that NSE’s compliance cleanup is nearly complete, giving the market fresh hope for a near-term listing.
- Strong Q4 numbers: Net profit for Q4 FY25 came in at Rs 2,650 crore, up 7 per cent year-on-year (YoY). The dividend? A solid Rs 35 per share.
- Short squeeze drama: Limited supply in the unlisted market meant brokers caught on the wrong side had to buy back at higher prices, and fast.
- Valuation catching up: Even at this price, NSE trades at nearly 35x earnings, cheaper than BSE’s 53x. That’s making it look like a bargain.
Quick look: NSE vs BSE
| Metric | NSE (Unlisted) | BSE (Listed) |
|---|---|---|
| Market cap | Rs 5.2 lakh crore | Rs 12,200 crore |
| P/E ratio | 35x | 52.7x |
| Q4 FY25 net profit | Rs 2,650 crore | Rs 97.8 crore |
| Annual dividend | Rs 35 per share | Rs 12 per share |
| Data as of May 27, 2025. Sources: Company filings, media reports | ||
What does NSE do?
The NSE is India’s largest stock exchange by trading volumes. It runs the country’s most popular equity and derivatives platforms and also provides clearing, settlement and data services. From equities to commodities to currency, if it trades in India, chances are it trades on NSE.
Should investors jump in?
The excitement is justified: NSE is a cash machine with near-monopoly power. If the IPO does go through, those who entered early in the unlisted market could see solid gains.
But let’s not forget the risks:
- Unlisted shares lack liquidity and price transparency.
- If SEBI throws a curveball or delays the IPO, prices could reverse just as sharply.
- A lot of this week’s jump came from brokers covering short positions, not long-term buyers.
The bottom line
The NSE unlisted share rally is a textbook case of sentiment meeting scarcity. The fundamentals are strong, and the IPO buzz is back. But if you're tempted to join the party now, make sure you’re not the one left standing when the music stops.
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Disclaimer: This is not a stock recommendation. This story was created with the assistance of artificial intelligence and is intended for informational purposes only. Please take it with a pinch of salt and do your own research or consult a financial advisor before making investment decisions.
Disclaimer: This content is for information only and should not be considered investment advice or a recommendation.
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