$BSE

Shares of BSE ended their three-session winning streak on June 17, declining 3.5% in trade as investors reacted to reports that the National Stock Exchange (NSE) is set to file its draft red herring prospectus (DRHP) for a proposed Rs 30,000-crore initial public offering (IPO) later in the day. The much-awaited NSE IPO appears to be moving closer to reality, with the country's largest stock exchange expected to submit its DRHP to the Securities and Exchange Board of India (SEBI) on Wednesday evening. The public issue is likely to be structured entirely as an offer for sale (OFS), allowing existing shareholders to collectively offload around 6% of the exchange's equity. Based on NSE's estimated unlisted market valuation of nearly Rs 5 lakh crore, market participants expect the IPO size to be around Rs 30,000 crore, potentially making it one of the largest listings in India's capital markets history. Market observers believe BSE's decline reflects concerns that it could lose its distinction as India's only listed major stock exchange once NSE enters the public market. The prospect of a listed NSE may also prompt investors to reassess valuations, with some potentially rotating capital from BSE into NSE, given the latter's dominant position in the futures and options (F&O) segment and its significantly larger market share.