NSE's valuation jumps 60% to $58 billion ahead of IPO

Growing hopes for a listing of the world’s biggest equity-derivatives bourse have pushed the valuation of the National Stock Exchange of India Ltd. to $58 billion in private markets, according to people involved in recent transactions.

Wealthy investors and institutions anticipating an initial public offering as early this year have been buying the unlisted shares aggressively, two of the people said, asking not to be identified as the deals are private. With demand far outstripping supply, the stock has changed hands for as much as Rs 2,000 ($23) recently. Its valuation had already doubled in just four months to as much as $36 billion in September.

The rally coincides with efforts by the exchange to settle a longstanding legal dispute with India’s securities regulator that has held up its listing plans for nearly a decade. A potential IPO would place NSE’s $58 billion valuation above that of Nasdaq Inc. and would narrow the gap with Deutsche Boerse AG’s $62 billion market value, data compiled by Bloomberg show.

The NSE has almost 2.5 billion shares outstanding in private markets. Some 64% of that is held by public investors — including local and foreign institutions — and wealthy individuals, according to its website. An email to the exchange’s representative went unanswered.