NSE India Limited Pre IPO Unlisted Shares

NSENSE India is the leading stock exchange in India and the second largest in the world by number of trades in equity shares from January to June 2018, according to World Federation of Exchanges (WFE) report.

The National Stock Exchange of India Ltd. (NSE) launched electronic screen-based trading in 1994, derivatives trading (in the form of index futures) and internet trading in 2000, which were each the first of its kind in India.

NSE has a fully-integrated business model comprising our exchange listings, trading services, clearing and settlement services, indices, market data feeds, technology solutions and financial education offerings. NSE also oversees compliance by trading and clearing members and listed companies with the rules and regulations of the exchange.

NSE India Limited Unlisted Shares Details:

Total Available Shares: Available
Face Value: ₹ 1 Per Equity Share
ISIN: INE721I01024
Lot Size: 100, 500, 1000 and multiples shares
Current Unlisted Share Price: ₹ 3300, ₹ 3075, ₹ 3025 Per Equity Share inclusive of documentation, stamp paper, stamp duty and processing charges (around ₹ 20,000)

NSE share price is Rs 3000 per share for bulk quantity and Rs 3300 for retail quantity. Rates are negotiable. Call Dharawat Securities on 8108303330 for more details.

NSE stock is available only to specific investors as of now. The process of NSE approving the transfer of ownership rights takes anywhere between 2-4 months.

NSE India is a pioneer in technology and ensures the reliability and performance of its systems through a culture of innovation and investment in technology. It believes that the scale and breadth of its products and services, sustained leadership positions across multiple asset classes in India and globally enable it to be highly reactive to market demands and changes and deliver innovation in both trading and non-trading businesses to provide high-quality data and services to market participants and clients.

NSE has 11 group companies at present. These include NSE Academy, NSE Clearing, NSE Data and Analytics, NSE Foundation, NSE Indices, NSE Investments, NSE International Exchange, NSE International Clearing, NSEIT, NSE Infotech and NSE Cogencis.

Financials of National Stock Exchange (Figs in Rs crore)

Particulars 2021-22 2020-21 2019-20 2018-19 2017-18
Total Income 9500 6202 3898 3515 3033
PAT 5198 3573 1885 1708 1461
EPS 105 72 38 35 30
Book Value per Share 311 235 174 157 148

For financial year 2021-22, NSE’s consolidated revenues rose 53 percent to Rs 9500 crore and consolidated net profit rose around 44 percent to Rs 5184 crore.

NSE latest financial results Q2 and H1 FY 2023 update

NSE logged a 53 per cent jump in consolidated net profit to Rs 3,463 crore for the six months ending September 2022 (H1FY23). During this period, the country’s largest bourse’s total income rose 57 per cent to Rs 6,293 crore, driven by a sharp increase in options trading volumes.

Book Value per Share stood at Rs 339 per share and net worth was Rs.16,766 crore as on 30 September 2022.

Its equity options volume more than doubled year-on-year during the first half, and cash market volumes rose 18 per cent. NSE has almost a monopoly in the equity derivatives segment and a 93 per cent market share in the equity cash segment.

NSE also told investors that it intends to sell some of its non-core business, including the talent management business and cloud computing business.

On the listing plans, the bourse’s new managing director and chief executive officer (MD & CEO), Ashishkumar Chauhan,  said many shareholders are keen to know when the IPO will happen, and the exchange is doing everything in its control to obtain a regulatory go-ahead.

While regulatory issues have stopped NSE’s listing plans, the exchange has managed to clock robust financial performance and consolidate its market share.

NSE gets board nod for stock split, bonus shares
In 2018, NSE announced 1:10 bonus i.e., one bonus share would be issued for every 10 shares held. The exchange also decided to spilt the face value of its shares to Rs 1 each from Rs 10  and record date was 15 December 2018.
NSE Dividend history details
NSE had declared a dividend of Rs 42 per share in FY 2021 – 2022. Record Date was 5 July 2022.
NSE had declared dividend of Rs 24.75 per share in FY 2020 – 2021. Record Date was 18 August 2021.
NSE had declared dividend of Rs 20.80 per share in FY 2019 – 2020. Record Date was 11 September 2020 and 15-Nov-2019
NSE had declared dividend of Rs 17.25 per share in FY 2018 – 2019.

NSE – Corporate Office

National Stock Exchange of India Ltd.
Exchange Plaza,
Plot no. C/1, G Block,
Bandra-Kurla Complex
Bandra (E)
Mumbai – 400 051
research@nse.co.in

Products

Equity & Equity Linked Products

  • Cash Market (Equities)
  • Indices
  • Mutual Funds
  • Exchange Traded Funds
  • Initial Public Offerings
  • Offer for Sale
  • Institutional Placement Program
  • Security Lending and Borrowing Scheme
  • Sovereign Gold Bonds Scheme

Derivatives

  • Equity Derivatives
  • Currency Derivatives
  • NSE Bond Futures

Debt

  • Debt Market
  • Corporate Bonds
  • Electronic Debt Bidding Platform (NSE-EBP)

Between 1994 and 2016, NSE expanded its lines of business and product offerings and has grown our business beyond traditional listing and trading services.

The indices of the National Stock Exchange are NIFTY 500, NIFTY 50, and NIFTY Next 50.

Milestones

Year History
1995 Setup wholly-owned subsidiary, NSE Clearing, which became the first clearing corporation to be established in India (according to the Oliver Wyman Report). NSE Clearing commenced clearing and settlement operations in the following year.
1998 Established NSE Indices, our subsidary, as a joint venture with CRISIL Limited to operate an indices business. NSE Indices became a wholly-owned subsidiary in 2013 following the acquisition of CRISIL’s 49% stake.
1999 Established NSEIT, a wholly-owned subsidiary and a global technology firm that provides end-to-end technology solutions, including application services, infrastructure services, analytics as a service and IT enabled services. In 2015 and 2016, respectively, NSEIT launched its Testing Center of Excellence and Integrated Security Response Center
2000 Incorporated DotEx, a wholly-owned subsidiary, and consolidated the data and info-vending business under DotEx.
2006 Incorporated NSE Infotech Ltd., a wholly-owned subsidiary for IT research and development.
2016 Consolidated the education business under NSE Academy, a wholly-owned subsidiary. Incorporated two new subsidiaries, NSE IFSC Limited and NSE IFSC Clearing Corporation Limited, in furtherance of NSE’s long-term business strategy to establish an international exchange in GIFT City.

The stock exchange also has strategic investments in complementary businesses, including mutual fund registry services, back-end exchange support services for its platforms, depository services, e-corporate governance and commodity, power and receivables exchanges.

According to the Futures Industry Association (FIA), NSE emerged the world’s largest derivatives exchange for the second consecutive year in 2020 in terms of number of contracts traded. The bourse has been ranked fourth in the world in terms of the number of cash trades by the World Federation of Exchanges (WFE) for Calendar 2020.

Incorporated in 1992, NSE was elevated to the status of stock exchange by Sebi in 1994 and commenced operation in the same year. NSE owns a number of subsidiaries including NSE Clearing, NSE Investments, NSEIT, NSEIT (US), NSDL, NSE Indices, NSE Data & Analytics and a few more.

NSE Shareholding pattern

As per the shareholding pattern as on 30th September 2022, the Non – Public Shareholding is at 44.33% against the prescribed limit of 49% and the public holding is 55.67% against the minimum prescribed limit of 51%.

The exchange counts Tiger Global and Canada Pension Plan Investment Board as key investors. Some billionaires owning a stake in NSE include Azim Premji, who owns a 3% stake through his family office Premji Invest; N.R. Narayana Murthy (through Catamaran Ventures); and Radhakishan Damani, who owns 1.58%.

The Life Insurance Corporation is the biggest stakeholder in the NSE with a 10.7% stake. State Bank of India has a 3.63% stake, SBI Capital Market Limited 4.33%, General Insurance Corporation of India 1.64%, New India Assurance Company 1.42% and the Stock Holding Corporation of India Limited has a 4.44% stake in the exchange.

NSE, which is India’s largest derivatives market, reported earnings per share of Rs 27.94 for H1FY 2021 (between April and September 2020). The consolidated EPS for December quarter is likely to be way higher due to a record volume churn in the stock markets on extreme volatility. The NSE earns higher transaction charges when the trading volumes are more. The EPS for NSE’s rival BSE currently stands at Rs 27.59. Multi Commodity Exchange enjoys EPS of Rs 42.17. MCX is also a comparable company.

NSE Factsheet

NSE is an undisputed market leader in most of the asset classes̶̶ – Cash Segment (93% market share), Equity Futures (100%), Equity Options (94%) and Currency Derivative (73%).

NSE, after its incorporation in 1992, was recognised as a stock exchange by SEBI in April 1993 and commenced operations in 1994 with the launch of the wholesale debt market, followed shortly by the launch of the cash market segment.

NSE’s sustained leadership position across asset classes in the Indian and global exchange sectors demonstrates the robustness and liquidity.

Bulk of the exchange’s revenue comes from Transaction Income, followed by Clearing Income, Colocation, Data Feed and Listing Fees.

NSE unlisted shares market valuation

The National Stock Exchange (NSE) of India is the most valuable unlisted company in India.

NSE Ltd share price is approx Rs 3000 per equity share. Based on this price, Market Capitalisation (mcap) of NSE comes to Rs 147000 crore.
Number of shares is 49 crore equity shares of Re 1 each.  

Sebi clears appointment of BSE’s Ashish Kumar Chauhan as NSE chief – 18 July 2022

The Securities and Exchange Board of India (Sebi) has cleared Ashish Kumar Chauhan’s candidature for the post of managing director (MD) and chief executive officer (CEO) of the National Stock Exchange (NSE). He is currently the MD & CEO of the BSE. Vikram Limaye demitted the office of MD & CEO of the NSE on 16 July 2022.

The NSE has nearly a monopoly in the equity derivatives segment, while in the cash segment, it has more than 90 per cent market share. The BSE has lost market share in the equity cash segment to the NSE from 17 per cent in FY17 to below 8 per cent in FY22. Since the Covid pandemic, trading volumes, revenue growth, and profitability at the NSE have sky-rocketed due to the surge in the markets and a spurt in new investors.

A feather in Chauhan’s cap will be if the NSE is able to push through with its initial public offering (IPO), which has been stuck due to the exchange’s regulatory troubles.

IPO Coming Soon : 

Trading in the shares of the National Stock Exchange is gaining traction ahead of its initial public offer (IPO). Investors are extremely bullish on the country’s largest stock exchange. They swear by the sound fundamentals and growth prospects of NSE, which has been eyeing a listing for some time now.

Earnings per share is Rs 105. Rival BSE, with a much smaller market share, slower growth in revenues, and less than half the operating profit margin, is quoting at roughly 40 times trailing earnings.

Using the same yardstick, NSE unlisted share price should be or valued to be worth Rs 4000 apiece, not factoring its dominant market position and better return ratios.

The gap between the fair value and NSE grey market price can be explained by the uncertainty over when the bourse will eventually go public.

National Stock Exchange had in December 2016 filed a draft red herring prospectus (DRHP) but Sebi put the application on hold following the co-locations case probe. The Securities and Exchange Board of India (Sebi) may finally give in-principle approval to the Rs 10,000-crore initial public offering (IPO) of National Stock Exchange.

Outlook: 

NSE shares trade at around Rs 3,000 per share. The Mumbai-based exchange has more than 95 percent market share in the derivatives segment and almost 90 percent in the cash segment. The stock exchange may get listed on the Bombay Stock Exchange.

The Bombay Stock Exchange and the Multi Commodity Exchange are already listed on the bourses. Recently, the National Commodity Derivative Exchange, a subsidiary of the NSE, got the Sebi go-ahead for an IPO. The bourse holds a 15 percent stake in NCDEX.

The number of new investor registrations in India witnessed a substantial growth in 2020, with 70 lakh new registrations, being the highest in a calendar year and 2.3 times the number of registrations that took place in 2019.

NSE’s capital market segment’s average daily turnover grew 57 per cent last year. Also, transaction volumes through mobile and internet-based platforms surged, accounting for 35 per cent of total cash market turnover.

The stock is hot favorite among HNIs, domestic and foreign institutions and retail investors due to near monopoly status and high entry barriers. With a near-monopoly status and lowest charges, NSE has the potential to gain substantially from here on. It can be the biggest story of Indian stock market in the next few decades. Addition of the newly opened demat accounts signals a significant surge in performance.

National Stock Exchange (NSE) is the undisputed leader and is the best way to take exposure to India’s capital market.

FY21/22 are two of the best years for Capital Markets in terms of growth in volumes, increased participation from investors and listing of new companies.

Most of NSE’s expenditure is towards technological advancement. So the company will receive the valuation of a Fintech rather than an exchange operator.

Moreover, the National Stock Exchange doesn’t have any business cyclicality, which shows its inherent benefits for long-term investors.

India has witnessed one of the highest growth rates in Demat account opening and NSE active clients in the last 2- years due to online account opening (onboarding) of clients. Now investors can open demat account in just less than 5 minutes with the help of digital technology.

Various popular brokers like Zerodha, Upstox, Groww have disrupted the market with their superb technology and contributed to boosting volumes on the stock exchanges. This will in turn benefit stock exchanges like NSE and BSE.

Product innovations and multiple regulations led to sharp increase in option contribution to the transaction income.

With final judgement on Colocation case around the corner, NSE is likely to get listed in the foreseeable future.

Given that Asian peers HKEX and SGX trade at 30-35x 1yr fwd. EPS and MCX is trading at 34x FY24 EPS, we believe NSE, for its market dominance, can be valued at 35x FY24 Core EPS implying a target price of Rs 3,950

Moreover, with favorable macros, there is a durable long-term growth opportunity in NSE. Further, NSE’s efforts to diversify revenue from equities (GIFT city, Data, Index License, IT & Education subsidiaries, and other securities like currency) should reduce the cyclicality. Fixed cost model and cash-rich balance sheet are other USPs of this business model which shall result in EBIDTA/PAT margin expansion.

How to buy NSE unlisted shares ? 

The procedure for buying NSE India Limited Unlisted Shares from Dharawat Securities is very simple. Please call 8108303330 for more details.

Our media coverage on NSE  

NSE Pre IPO Unlisted Shares in huge demand. – Economic Times 19 April 2021

At the current price in the unlisted market, NSE valuation is Rs 87,000 crore.

NSE Unlisted Shares

 

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