The National Stock Exchange of India has issued a request for proposals to investment banks, inviting them to pitch for roles on its long-awaited initial public offering, according to people familiar with the matter. The exchange is seeking underwriters for what could be one of the largest IPOs in India's history, with the offering potentially valued at $2.5 billion. This move marks a significant step toward the exchange's privatization, which has been in the works for years.

The IPO comes as India's capital markets continue to mature, with the NSE seeking to capitalize on strong investor appetite for financial sector listings. The exchange has been majority-owned by institutional investors including Goldman Sachs and ICICI Bank since its inception, but plans to offer a portion of shares to public investors. The timing aligns with India's broader push to deepen its equity markets and attract more foreign investment.

Investment banks are expected to compete aggressively for roles on this landmark deal, which could reshape India's financial services landscape. The successful bidders will likely be announced with the IPO potentially launching later this year. This transaction represents a major milestone for India's capital markets and could set the stage for other exchanges in emerging markets to follow suit.