National Stock Exchange of India Limited makes a corporate announcement

The subsidiary is National Coal Exchange of India Limited, currently wholly owned by NSE. The board approved divestment of up to 40% through a secondary sale in one or more tranches ^[1].

No consideration amount was disclosed in that board resolution; it states that further details will be provided once the transaction terms are finalised ^[1]. Therefore, a numeric implied valuation cannot be confirmed.

The calculation would be:

Implied 100% valuation = consideration for 40% stake ÷ 40% = 2.5 × consideration

Thus, if the eventual consideration is ₹X Cr, the implied valuation would be ₹2.5X Cr.

The transaction, as currently disclosed, does not imply a subsidiary-to-associate reclassification, and NCEIL’s FY26 financial contribution cannot be quantified from the reported entity-level data.

• FY26 consolidated base: NSE reported revenue from operations of ₹16,601 Cr and consolidated PAT of ₹10,302 Cr for FY26. The cited consolidated results table does not provide a separate FY26 revenue or PAT line for National Coal Exchange of India Limited (NCEIL); therefore, its absolute contribution and percentage contribution to NSE cannot be calculated. ^[2]
• Transaction status: NSE’s Board approved the sale of up to 40% of NCEIL, which was then a wholly owned subsidiary. The sale is proposed through one or more secondary transactions, and final terms were yet to be finalised. ^[1]

Accounting effect

If NSE sells the full 40%, it would retain a derived 60% stake, assuming no special voting or control arrangements. ^[1] On that disclosed structure:

• NCEIL would continue to be consolidated as a subsidiary, because NSE would ordinarily retain control.
• The consolidated statements would continue to include NCEIL’s revenue and expenses line by line.
• A 40% non-controlling interest would arise in the consolidated accounts, with the subsidiary’s profit allocated between NSE shareholders and the outside shareholders.

A subsidiary-to-associate change would occur only if a later transaction or governance arrangement caused NSE to lose control while retaining significant influence. In that case, NCEIL would generally move to the equity method: its revenue would no longer be consolidated line by line, and NSE would instead recognise its share of NCEIL’s post-tax profit as “share of profit of associate.” The Board approval presently disclosed does not establish that outcome.

No. The board disclosure does not classify the divestment as either a strategic partnership or a regulatory-compliance measure. It only approves the sale of up to 40% of National Coal Exchange of India Limited through a secondary sale, in one or more tranches. It states that further details will be disclosed once the transaction terms are finalised. ^[1]

The disclosure also does not report:

• pre-defined exit clauses;
• lock-in periods;
• call or put options; or
• other special rights attached to NSE’s retained stake.

The reference to a “remaining 60%” is therefore conditional: NSE would retain 60% only if the full 40% divestment is completed; the approval is for “up to” 40%, not necessarily exactly 40%. The transaction structure, counterparty, pricing, timetable and shareholder-rights arrangements could not be confirmed from the board disclosure.