NSE IPO: Why India Lacks More "Cash Generating Machines" Like NSE

As the National Stock Exchange (NSE) prepares for a massive ₹30,000-crore IPO, Zerodha founder Nithin Kamath has highlighted a unique characteristic of the exchange that sets it apart from most Indian enterprises. While most companies prioritize reinvestment, the NSE operates as a high-yield "cash generation and distribution machine," sparking a debate on taxation and business models in India.

The NSE Phenomenon: High Profits and Massive Dividends

Nithin Kamath recently pointed out that the NSE’s financial profile is an anomaly in the Indian corporate landscape. In FY26, the exchange reported a staggering profit of over ₹10,300 crore. What makes it truly unique is its distribution strategy: the exchange distributed approximately ₹8,660 crore as dividends, representing a massive 84% payout ratio.

According to Kamath, this trend is likely to continue post-listing. Unlike tech startups or manufacturing giants that require heavy capital expenditure for expansion, the NSE faces regulatory restrictions that prevent it from investing its surplus cash into other listed or private businesses. Consequently, returning excess profits to shareholders through dividends becomes the primary use of its liquidity.

The Tax Arbitrage: Why Most Companies Avoid Dividends

A central question raised by Kamath is why so few Indian businesses follow this model. The answer lies in the tax structure governing dividends versus capital gains.

When a company earns ₹100 in profit, it first pays corporate tax, leaving roughly ₹75. If that ₹75 is distributed as a dividend, shareholders are taxed again at their personal marginal income-tax rate. For investors in the highest tax bracket, this "double taxation" significantly eats into the net returns.

In contrast, companies are incentivized to retain earnings and reinvest them into growth. This strategy drives stock price appreciation, allowing shareholders to benefit from capital gains. Since capital gains are taxed at a substantially lower rate than dividend income, most modern businesses prioritize expansion over profit distribution to optimize tax efficiency for their investors.

Resilience Through Profitability

再投資は経済成長に不可欠である一方、カマート氏は、あらゆる犠牲を払ってでも成長を優先する考え方は危険を伴う可能性があると警告した。彼は、意味のある利益を生み出せない企業は景気後退期に非常に脆弱になり、「一度の不況サイクルが致命的な打撃を与えかねない」と指摘した。また、長期的なビジネスの回復力は、根本的には持続可能で高利益率な収益性に根ざしていると主張した。

3,000億ルピー規模のIPOの詳細

来たるNSEのIPOは、同取引所の払込済株式資本の約6%に相当する、最大14.89クロール株の売出し（OFS）として構成されている。非上場市場での時価総額が約5兆ルピー前後で推移していることから、この案件はインド最大級のものになると予想されている。特筆すべきは、BSEの株式がNSEに上場している既存の仕組みと同様に、NSEの株式はBSEに上場されるという点だ。

主なポイント

• 独自の配当モデル: 余剰金の再投資に関する規制上の制限により、NSEは高い配当性向（2026年度は84%）で運営されている。
• 税制の格差: キャピタルゲインと比較して配当への税負担が重いため、インド企業は株主への配当よりも成長と再投資を優先するインセンティブが働く。
• IPOの規模: NSEのIPOは、規制による長年の遅延を経て、約3,000億ルピーの評価額が見込まれており、重要な節目となる。