NSE expects 300 companies to list annually in the next decade

The National Stock Exchange of India Ltd (NSE) anticipates 250 to 300 new listings annually, across its mainboard and SME platform, NSE Emerge. This projection is based on favourable market indicators and an increase in number of companies seeking to raise capital across various sectors.

Over the next decade, NSE expects the total number of listed companies to double to 6,000. Currently, around 3,100 companies are listed on the NSE, which is in its 30th year of operations. This optimistic growth outlook underscores NSE’s confidence in India’s capital markets, spurred by a mix of IPOs by large corporations, emerging SMEs and start-ups.

“In FY24, we saw a total of 220 companies, including both mainboard and SME listings,” said Sriram Krishnan, Chief Business Development Officer at NSE.

He highlighted NSE’s pivotal role as the world’s fourth-largest stock exchange in facilitating transparent capital raising. Over the past three decades, companies on NSE have raised an estimated $200 billion, contributing to a total market capitalisation of around $5.5 trillion across approximately 3,100 listed entities, including about 2,600 on the mainboard.

As India’s GDP is projected to reach $10 trillion by 2033, the market capitalisation of companies listed on the NSE is also expected to grow significantly, potentially reaching between $11-12 trillion. “We expect this growth to be driven by new listings, with India’s ecosystem of over 125,000 startups and 130 unicorns offering substantial listing opportunities,” Krishnan added

Moreover, India’s nearly 10 million SMEs represent another significant opportunity. Many of these enterprises face challenges in accessing bank loans or affordably securing capital from non-banking financial companies (NBFCs). NSE Emerge offers these smaller enterprises a viable platform for capital raising, providing a crucial pathway for their growth.

“However, we remain committed to maintaining stringent quality standards, ensuring that only credible companies make it to the platform. Additionally, we uphold high benchmarks for transitioning companies to the mainboard,” he added.

In terms of geographical interest, NSE has noted a rising interest in NSE Emerge from MSMEs in states like Uttar Pradesh, Gujarat, and Tamil Nadu, with an expanding presence even in smaller states.

To focus non-agri products

Recently, NSE has also ventured into the non-agricultural commodities space. Given India’s reliance on crude oil imports, NSE believes that a robust commodities market is essential for sustainable economic growth. While commodities markets in other countries are five times larger than equity markets, India’s commodities market remains relatively small.

“For India to realise its vision of a $10 trillion economy, commodities must play a more substantial role. This is why we launched non-agricultural commodity trading last year, focusing initially on crude oil and natural gas,” Krishnan explained.

Since introducing options contracts, NSE has seen active participation from over 260 members. Currently, about 140 members are actively trading daily, with open interest peaking at approximately 600,000 barrels — an impressive figure. NSE’s commodities offerings span across bullion, energy, and base metals. Bullion trading includes gold and silver, while the energy sector focuses on crude oil and natural gas. The primary base metals traded include copper, lead, zinc, and aluminium.

“At present, we hold a market share of around 3 per cent, and we are focused on expanding it significantly. Our platform’s robust fundamentals — such as margin fungibility, cost-efficiency, and a reliable settlement system — create a solid foundation for this growth. For example, we charge ₹100 per crore of options volume, significantly lower than other exchanges,” Krishnan pointed out.

“If not a fivefold increase, our objective is to bring commodities trading to a level comparable to equities.”