NATIONAL STOCK EXCHANGE OF INDIA LIMITED (NSE)

Buy

₹ 2825(T&C apply)

Sell

₹ 3250 (T&C apply)

Under Valued

Company Overview

In 30 years since it was founded in 1992, National Stock Exchange (NSE) has come a long way in redefining stock trading in India. With 1,968 companies listed on its bourse, having a combined market cap of ₹ 2,02,95,813 crores, NSE is India’ largest stock exchange. 

NSE was a pioneer in the country to introduce fully-automated screen based electronic trading for traders. Its flagship index, NIFTY 50, is used as a proxy for the Indian capital market by market participants around the world. 

With 21% of the global derivative contract traded on its bourse, NSE is also the world’s largest derivative exchange and 2nd largest derivatives exchange in the world in terms of currency futures traded. With a market cap of $ 3.4 trillion, NSE is now the world’s 10-largest stock exchange (as of August, 2021).

Following is the history of dividends declared by National Stock Exchange (NSE):

2022: Rs 42 per share

2021: Rs 24.75 per share

2020: Rs 20.80 per share

2019: Rs 17.25 per share

2018: Rs 14.75 per share

As on 31-March-2022, the total outstanding shares of the National Stock Exchange Ltd (NSE) were 49,50,00,000 shares of face value of Rs 1 each and LIC was the biggest shareholder with 10.72%  shareholding. As on 23-June-2022, at Rs 3,500 share price in the unlisted market, the total market cap of the company was Rs 1,73,250 crores and P/E of 33x (3500/104.95). 

NSE Business Model

NSE’s capital market business model is fully-integrated from exchange listing, trading services, clearing and settlement, indices, market data feeds, and technology solutions.  

Key Products & Services

Cash Market: In the cash market segment, NSE offers a platform to trade equity shares, mutual funds, ETFs, REITs, InvITs, Sovereign Gold bonds (SGB), government securities, treasury bills to domestic and foreign investors.

Debt: In the debt segment, NSE offers a platform to trade corporate bonds, govt. securities, commercial paper, convertible and non-convertible debt instruments to domestic and foreign investors.

Derivatives: In the derivatives segment, NSE offers a platform to trade equity derivatives (index and equity derivatives), currency derivatives, interest rate derivatives, commodity derivatives (including agricultural and non-agricultural derivatives) to domestic and foreign investors.

Data and Information Vending: NSE provides real-time data feed, EOD data, historical trade data, corporate data, bond valuation, indicative NAV for ETFs to various data vendors, media houses, financial websites, software developers.

Index Services: NSE provides index management services including  equity indices (Nifty 50, bank nifty), ESG indices, hybrid indices, customised indices to asset management companies, ETF issuers, insurance companies, NBFCs, investment banks, PMS, stock exchanges, AIFs etc. 

Registered Address

The registered address of the NSE is located at Exchange Plaza, Plot C-1, Block G, Bandra Kurla Complex, Bandra (East), Mumbai, Maharashtra.

SymbolNational Stock Exchange (NSE) of India Limited
Face Value (₹):₹ 1
ISIN:INE721I01024
Demat Status:NSDL & CDSL
Lot Size:500 Shares

Board of Directors

NameDesignationProfile
Mr. Girish Chandra ChaturvediChairmanlinkedin
Mr. Vikram LimayeMD & CEONA Final 1
Ms. Anuradha RaoDirectorlinkedin
Mr. K Narasimha MurthyDirectorNA Final 1
Prof. S SudarshanDirectorlinkedin
Ms. Mona BhideDirectorlinkedin
Mr. Prakash ParthasarathyDirectorNA Final 1
Ms. Sunita SharmaDirectorNA Final 1

Key Business Highlights

  • Spectacular business performance: Sales & PAT growth at 27% and 35% CAGR over the last 3 years.  
  • NSE unlisted shares are commanding premium valuation in the market, equivalent to tech companies, due to its near monopoly position in derivatives segment and dominant position in the cash market, non-cyclical business model and high-technology spend relative to peers. 
  • NSE emerged as a big beneficiary from the Covid pandemic due to outperformance of the Indian capital markets, record primary market listings, and record high inflow of foreign and domestic investor capital. 
  • Backed by strong institutional investors including LIC, SBI Caps.

Ratio

RatioFY22FY21
Operating Margin74%72%
Net Profit Margin55%58%
Return on Equity 34%31%
Debt-Equity0.030.02
Current Ratio1.711.51
Dividend Payout Ratio40%34%

Financial Highlights

Particulars2021-222020-212019-202018-192017-18
Total Income (₹ Crores) 9499.646202.333897.523514.573032.56
PAT (₹ Crores) 5198.293573.421884.781708.041461.47
Diluted EPS 104.9572.2038.0834.5129.52
Book Value per Share (₹) 311.48235.07174.18157.34148.48
Equity (₹ Crores) 15418.2811635.958621.997788.267349.56

Financial Charts

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Shareholding Pattern

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Peer Comparison

The comparable peer having business model almost similar to National Stock Exchange is Bombay Stock Exchange Ltd.

CompanyMarket Cap (₹ Crores)Profitability Margin (%)ROCE (%)ROE (%)D/E RatioP/E RatioP/B RatioBook Value per Share (₹)
NSE LTD15840054.72%33.86%33.72%0.0330.4910.27311.48
BSE LTD807421.49%8.29%9.58%0.0031.753.08206.26


Media Updates

NSE is unlikely to join the IPO bandwagon this year. Here’s why ?

A buzz around the likely initial public offering of National Stock Exchange (NSE) lifted the prices of peers such as Indian Energy Exchange, MCX and BSE. 

There are ample roadblocks in NSE’s IPO path and the company has not yet taken clearance or moved to file its (draft red herring prospectus) DRHP.

NSE’s IPO could be pushed back to fast-track the initial offer of LIC, which is the primary focus of the government. LIC’s IPO has to happen in the current financial year and one should not be surprised if it knocks the door after the budget. This may postpone the IPO of NSE, maybe to the next financial year.

Read more: https://economictimes.indiatimes.com/markets/ipos/fpos/nse-unlikely-to-join-ipo-bandwagon-this-year-heres-why/articleshow/88104357.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

Frequently Asked Questions (FAQs) on National Stock Exchange Unlisted Shares

The buying and selling of unlisted shares and pre-IPO shares is fully legal and valid.

The procedure to buy the National Stock Exchange unlisted shares is time consuming which may take up to 3-4 months, since it requires prior approval from the National Stock Exchange. The exact settlement procedure and documentation involved can be learned online from our website: https://delistedstocks.in/current-offerings/national-stock-exchnage-of-india-limited/

The transactions related to unlisted shares of NSE require prior approval of the stock exchange.

The National Stock Exchange unlisted shares will get credited either the same day or before the end of the next working day post approval of the National Stock Exchange and your transfer of the full deal amount into our bank account.

The minimum lot size varies on the basis of market conditions and demand and supply factors. To know the current lot size for National Stock Exchange, please visit the stock page on our website: www.delistedstocks.in

There are many factors which influence the pricing of unlisted shares. Apart from the supply and demand factors, the latest transactions happened on the same stock, last funding round of the company, and valuation level of companies of the similar size affect the pricing of the unlisted shares. 

Before IPO, there is no restriction on sale and transfer of your National Stock Exchange unlisted shares. But once the shares are listed on the stock exchange, for retail investors, there is a minimum lock-in period 6 months after listing on the stock exchange. 

Once the selling price and quantity of shares is agreed with us, we will provide you with an UTR (Unique Transaction Reference) number to transfer the shares. Once you have transferred the shares into our company’s demat account, funds are released into your bank account within 24 hours or before the end of the next working day of the transfer of the shares.

If your holding period is less than 2 years, then such income is treated as business income and liable to get taxed as per tax slab of the investor. If your holding period is more than 2 years, then your profits would be subject to long-term capital gains tax. The current short-term capital gain tax rate is 20% after indexation.

The trading in unlisted shares is governed by Securities & Contract (Regulation) Act, which comes under the preview of SEBI.  The SEBI regulations become applicable when the stocks of the company get listed on the stock exchange. There is a minimum lock-in period of 6 months for pre-IPO investors. 

The major risk associated with investing in unlisted stocks is the liquidity risk. The possible exit route for investors is either to sell to another investor or wait till the company gets listed on the stock exchange. 

Yes, NRI’s can also buy and sell National Stock Exchange unlisted shares just like domestic investors. But their investment is on a non-repatriable basis. 

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