National Stock Exchange of India has filed draft papers for what could become one of the country's biggest IPOs, offering 148.9 million existing shares or roughly 6% of its equity. The landmark listing arrives as Indian capital markets need a boost - IPO proceeds have lagged at $3.5 billion this year versus over $20 billion annually in the two prior record-setting years.

Major shareholders including State Bank of India, General Insurance Corp of India, and Canada Pension Plan Investment Board will sell portions of their holdings, while Life Insurance Corp. of India maintains its 10.72% stake. The offering excludes new shares entirely, meaning investors are essentially buying existing positions rather than injecting fresh capital into the company.

This IPO represents a major comeback attempt after NSE's original 2016 listing plan collapsed amid Securities and Exchange Board of India allegations regarding corporate governance and market access issues. The exchange settled the matter by proposing payments of approximately 13 billion rupees. Twenty global banks including Morgan Stanley, JPMorgan Chase, and HSBC have been assembled to manage the process.

The offering's size could reinvigorate India's dormant IPO market, though investors will scrutinize valuations given the challenging market environment. NSE operates the world's most active derivatives market, making its public debut a significant test for investor appetite in Indian financial infrastructure.