BSE share price has fallen as the eagerly awaited National Stock Exchange (NSE) IPO moves towards its final subscription day on September 21, 2026, highlighting the valuation and market share differences between the two listed stock exchanges and the growing equity derivatives market.

NSE’s IPO opens on September 17 and will end on September 21, 2026. The price band has been set at ₹1,700 to ₹1,785 per share. The valuation at the higher end of the range implies a valuation of around ₹4.42 lakh crore for the exchange. The IPO issue is entirely an Offer for Sale (OFS), meaning that NSE itself will not raise any proceeds from the issue.

Why is the BSE Share Price Dropping?

The IPO gives investors a benchmark to judge the relative valuations of the two exchanges.

Shares in BSE had already fallen sharply after the filing of the draft IPO by NSE in June. Upstox reported that the BSE shares had fallen by over 22% in under three months since the NSE DRHP filing, and that its price-earnings multiple had also fallen during the period.

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BSE shares also dropped by over 3% on September 11 after NSE announced the IPO price band. BSE fell 3.41% to ₹3,193.20, with a one-month fall of 10.4%, according to a Business Today report.

The pressure is linked to the fact that the NSE public listing could change the way investors value the sector, where NSE enjoys a far bigger revenue and trading size, while BSE has grown more rapidly from a smaller base.

NSE IPO Valuation vs BSE Valuation

Using the upper limit of ₹1,785, the NSE IPO valuation implies a price-earnings ratio of around 42.9x, compared to a diluted EPS of ₹41.62 for FY26.

BSE has commanded a higher P/E multiple. Business Standard stated that the NSE IPO valuation was around 42.9x while the BSE valuation was around 54x, on a comparable basis.

A Business Today analysis as of the IPO price band announcement had put the BSE multiple at 52.68x FY26 earnings.

The two indicators reflect the fact that NSE is a much larger operation while BSE is experiencing faster growth off a smaller base. NSE has reported revenue of ₹16,601 crore for FY26, compared with ₹4,834 crore for BSE.

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BSE Gains Equity Derivatives Market Share

One of the key catalysts for BSE’s recent earnings growth has been its rising equity derivatives market share.

According to data cited by TradingView from CNBC-TV18, the BSE equity derivatives market share grew from around 3% in FY24 to nearly 25% in FY26. The same report noted that options contributed around 70% of BSE’s revenue and around 60% of NSE’s revenue.

The growth is important because derivatives, and more specifically options contracts, generate substantial transaction revenue for both exchanges.

NSE retains a dominant position, having a 92.99% market share in the cash market, 99.79% in equity futures and 74.71% in equity options based on premium turnover, according to data cited from its IPO documents. That puts BSE in a position where it has grown from a far smaller base in the derivatives markets.

Why Derivatives Matter for NSE IPO Valuation

The NSE’s business remains heavily biased towards transaction-based revenue from the derivatives market.

Its transaction charges accounted for 78.6% of the revenue from operations in FY26, of which options contributed 60.2% and futures a further 8.9% of revenue, according to data reported by Kotak Neo.

Derivative trading has seen a drop as the sector witnessed some regulatory changes in the past few years. Reuters had, ahead of the IPO, reported that the trading volume of derivatives had dropped by 27% against the peak in 2024. NSE’s revenue from operations dropped by 3.1% to ₹16,601 crore in FY26 and profit after tax reduced by 15.5% to ₹10,302 crore in FY26.

This is an important factor for investors considering the NSE IPO valuation because changes in the underlying options volumes can have a direct impact on transaction revenue.

At the same time, NSE maintains a dominant position in the overall market. According to data from the World Federation of Exchanges cited by Business Today, NSE accounted for 51.18% of global equity-derivatives contracts traded by major listed exchange groups in FY2026.

NSE and BSE Have Different Growth Profiles

The valuation divergence between the two exchanges cannot be explained simply by the difference in market share.

BSE’s higher valuation has been attributed by analysts to its faster growth in earnings on a smaller base and a rise in its equity derivatives business. NSE, which operates from a far larger base, faces the challenge of growing revenues on a bigger scale.

BSE’s FY26 revenue and profit growth were far higher than those posted by NSE, according to data reported by Equitymaster. But NSE remains substantially bigger on the metrics of cash-market turnover, derivatives and revenue.

Investors taking a closer look at both businesses would need to consider earnings growth, market share trends, derivatives volumes, transaction revenue and potential changes in regulations in addition to the P/E multiples.

NSE IPO: Key Details

The IPO will include an OFS of up to about 12.64 crore equity shares. Since it is not a fresh issue, the IPO proceeds will go to OFS sellers, not the company itself.

In addition, the proposed listing of NSE shares on BSE will create an unusual exchange structure: NSE shares will trade on the BSE because a listed exchange cannot list its shares on its own platform.

Investors should examine the two businesses based on their respective profitability, market share, growth profile and regulatory risks in addition to the P/E comparison.

Investment Disclaimer

This article is for informational purposes and does not constitute investment advice. Trading prices can change quickly, and investors should consult their own financial advisor before making investment decisions.

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