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

As investors prepare for the massive ₹30,000-crore NSE IPO, Zerodha founder Nithin Kamath has highlighted a unique phenomenon regarding the exchange's financial model. He describes the National Stock Exchange (NSE) as a rare "cash generation and distribution machine" that operates differently from most modern Indian corporations.

The NSE Financial Powerhouse

The scale of NSE’s profitability is staggering. According to Nithin Kamath, the exchange earned a profit of more than ₹10,300 crore in FY26. What makes it a standout for investors is its distribution model; the exchange distributed approximately ₹8,660 crore as dividends, representing an impressive payout ratio of 84%.

Kamath suggests that these generous payouts are likely to persist even after the company goes public. Unlike many high-growth tech or manufacturing firms, NSE faces significant regulatory restrictions that prevent it from investing its surplus cash into other listed or private businesses. Consequently, dividend distribution remains one of the few meaningful ways for the exchange to utilize its excess profits.

The Tax Arbitrage: Why Growth Beats Dividends

Kamath addresses a fundamental question: why are there so few Indian companies that return such a high percentage of profits to shareholders? The answer lies in the "tax arbitrage" between dividend income and 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 marginal income-tax rate. For high-net-worth individuals, this second layer of taxation significantly erodes the final returns.

In contrast, if a company retains those earnings to fund expansion, the value is reflected in the stock price. Investors only pay capital gains tax—which is substantially lower than income tax—at the time they sell their shares. This creates a massive structural incentive for companies to prioritize reinvestment and aggressive growth over immediate profitability and cash returns to shareholders.

Resilience Through Profitability

Walaupun melabur semula modal memacu pertumbuhan ekonomi, Kamath memberi amaran bahawa obsesi moden terhadap pengembangan berbanding keuntungan membawa risiko. Syarikat yang membakar tunai untuk memacu pertumbuhan menjadi sangat terdedah semasa kemelesetan ekonomi, di mana "satu kitaran buruk boleh melumpuhkan mereka dengan teruk." Beliau berhujah bahawa daya tahan perniagaan jangka panjang dibina atas asas keuntungan yang mampan dan bermakna.

Kamath juga menggunakan kes NSE untuk menyokong reformasi cukai, dengan mencadangkan bahawa perbezaan antara percukaian dividen dan percukaian keuntungan modal harus diperkecilkan bagi mengelakkan ketidakseimbangan semasa.

Mengenai IPO NSE

IPO NSE yang akan datang distrukturkan sebagai tawaran untuk jualan (OFS) 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, terbitan tersebut dijangka bernilai kira-kira ₹30,000 crore, menjadikannya tawaran awam kedua terbesar di India selepas Jio Platforms. Secara khususnya, saham NSE akan disenaraikan di BSE.

Ringkasan Utama

• Pembayaran Luar Biasa: NSE beroperasi sebagai entiti hasil tinggi dengan nisbah pembayaran dividen sebanyak 84% disebabkan oleh had kawal selia terhadap pelaburan alternatif.
• Ketidaksamaan Cukai: Undang-undang cukai India semasa memberi insentif kepada syarikat untuk menyimpan pendapatan bagi pertumbuhan berbanding membayar dividen bagi mengelakkan cukai dua kali.
• Daya Tahan Strategik: Walaupun pelaburan semula yang berfokuskan pertumbuhan adalah perkara biasa, keuntungan mampan kekal sebagai pelindung utama terhadap turun naik ekonomi.