NSE IPO: Why India Lacks Many 'Cash Generating Machines' Like NSE

As investors prepare for the massive ₹30,000-crore National Stock Exchange (NSE) IPO, Zerodha founder Nithin Kamath has highlighted a unique financial phenomenon. He describes the exchange as a rare "cash generation and distribution machine," sparking a vital conversation about why most Indian businesses prioritize growth over shareholder returns.

The NSE Model: High Profits and Massive Payouts

The upcoming NSE IPO is poised to be one of India’s largest public offerings, following in the footsteps of Jio Platforms. What makes the NSE unique is its extraordinary ability to convert earnings into shareholder wealth. According to Kamath, the exchange earned over ₹10,300 crore in profit during FY26.

Crucially, NSE distributed approximately ₹8,660 crore as dividends, representing a staggering payout ratio of 84%. Kamath notes that these generous payouts are likely to persist even after listing. This is primarily because regulatory constraints prevent stock exchanges from investing their surplus cash into other private or listed businesses, leaving dividend distribution as one of the few viable ways to utilize excess profits.

The Tax Arbitrage: Why Growth Beats Dividends

Kamath identifies a fundamental reason why most Indian companies avoid high dividend payouts: the tax disparity between dividend income and capital gains. He explains that when a company earns ₹100, it first pays corporate tax, leaving roughly ₹75.

If that ₹75 is distributed as a dividend, shareholders are taxed again at their marginal income-tax rate, which can be significantly high for many investors. Conversely, if a company retains those earnings to fund expansion, the value is reflected in the stock price. Investors then benefit from capital gains tax, which is typically much lower than income tax. This "tax arbitrage" creates a massive incentive for modern businesses to prioritize reinvestment and aggressive growth rather than returning cash to shareholders.

The Risk of Ignoring Profitability

Walaupun melabur semula modal adalah penting untuk pertumbuhan ekonomi, Kamath memberi amaran bahawa minda "pertumbuhan pada apa jua kos" membawa bahaya yang tersirat. Perniagaan yang hanya menumpukan kepada pengembangan tanpa mengekalkan keuntungan yang bermakna dan mampan sering kali menjadi sangat terdedah semasa kemelesetan ekonomi. Beliau berhujah bahawa daya tahan perniagaan jangka panjang berakar umbi dalam keuntungan, sambil menyatakan bahawa satu kitaran ekonomi yang buruk boleh "melumpuhkan" syarikat yang kekurangan simpanan tunai yang kukuh.

Butiran IPO NSE

IPO NSE distrukturkan sebagai tawaran jualan (OFS) sebanyak sehingga 14.89 crore saham ekuiti, mewakili hampir 6% daripada modal ekuiti berbayar bursa tersebut. Dengan penilaian pasaran tidak tersenarai yang berkisar sekitar ₹5 lakh crore, saiz terbitan dianggarkan kira-kira ₹30,000 crore. Dalam satu kelainan pasaran yang unik, saham NSE akan disenaraikan di BSE, mencerminkan aturan sedia ada di mana saham BSE disenaraikan di NSE.

Ringkasan Utama

• Pembayaran Luar Biasa: NSE mengekalkan nisbah pembayaran dividen yang tinggi (84% pada FY26) disebabkan oleh had kawal selia tentang cara ia boleh menggunakan lebihan tunai.
• Ketidaksamaan Cukai: Jurang antara cukai dividen yang tinggi dan cukai keuntungan modal yang lebih rendah memberi insentif kepada syarikat untuk melabur semula keuntungan daripada mengagihkannya.
• Daya Tahan Melalui Keuntungan: Walaupun pelaburan semula memacu pertumbuhan, keuntungan yang mampan adalah kritikal untuk mengharungi kitaran ekonomi dan memastikan kelangsungan jangka panjang.