The National Stock Exchange (NSE) witnessed a remarkable 115% surge in retail investor participation during the January–March 2025 quarter, with the number of retail shareholders increasing from 15,771 to 33,896. This growth is attributed to two primary factors: the anticipation of NSE's forthcoming initial public offering (IPO) and the reduced share price following a 4:1 bonus issue in the previous quarter, which lowered the entry point to approximately ₹1,200 per share. ​

Retail investors' shareholding in NSE rose from 8.03% to 9.89% during this period. High net worth individuals (HNIs) also increased their stake from 7.6% to 9.64%. Conversely, domestic institutional investors reduced their holdings from 11.25% to 5.44%, while foreign investors, including FDI and FPI, increased their stake from 22.48% to 28%.​

The NSE has initiated its listing process by applying for a No Objection Certificate (NOC) from the market regulator, signaling progress toward its anticipated IPO. Analysts suggest that the combination of favorable valuation metrics and robust market volumes, particularly in derivatives where NSE commands a 74% market share, presents a compelling opportunity for investors. ​

The trading value of NSE's unlisted shares surged by 67% to ₹5,846.65 crore in Q4 FY2025, up from ₹3,498.43 crore in the previous quarter, indicating heightened investor interest ahead of the IPO.​

This significant increase in retail investor participation underscores the growing confidence in India's equity markets and the democratization of investment opportunities.