
NSE IPO: Nithin Kamath Calls It a Cash Generation Machine
๐ BIGGEST MARKET UPDATE: NSE IPO Buzz! ๐
Zerodha Co-founder Nithin Kamath just gave his unfiltered take on the upcoming National Stock Exchange (NSE) IPO, calling it an absolute "Cash Generation & Distribution Machine." ๐ฐ๐ฅ
Here is a quick breakdown of the mind-boggling numbers he shared ahead of India's most-awaited market listing:
๐ The Explosive Numbers (FY26):
* Net Profit: A staggering โน10,300+ Crore
* Dividends Paid: โน8,660 Crore returned directly to shareholders!
* Dividend Payout Ratio: An insane 84%
๐ก Why will this cash party continue post-listing?
Kamath points out that SEBI rules strictly prevent stock exchanges from investing excess profits into other businesses (listed or private). Since the NSE has very limited avenues to deploy its massive cash surplus, it has no choice but to keep showering its shareholders with heavy dividends. ๐ธ
๐ข The Rare "Monopoly" Advantage:
Unlike new-age tech startups that burn cash to grow, NSE operates on a capital-light, dominant model (holding over 90% market share in equity derivatives).
The Mega IPO Details:
Expected to be a โน30,000 Crore* public issue (India's 2nd largest ever!).
* It's a 100% Offer for Sale (OFS)โmeaning existing big players like SBI and IDBI are selling their stakes, and no fresh cash goes into the company.
NSE will list on its rival exchange, the BSE*!