The National Stock Exchange’s (NSE) Q4 performance has been strong, with a 19% year-on-year increase in profits from unlisted shares. This has enabled the NSE to declare a dividend of Rs. 80 per share, which will bring benefits to investors who have held their shares for at least 30 days as of the record date.
The NSE’s net profit for the quarter was Rs 1,810 crore, up 19% from the same period last year. This was driven by an increase in trading activity and higher revenues from other sources such as data services and listing fees.

The NSE also declared a dividend of Rs. 80 per share, which will be distributed to shareholders who have held their shares for at least 30 days prior to the record date of May 5th 2021.
This is one of the highest dividends declared this financial year and represents a return on investment of 8.3%.

This news will come as welcome relief to investors, who can now look forward to receiving additional returns from their holdings in the NSE.

NSE's Q4 Net Profit Rises

NSE’s Q4 Net Profit Rises 19% to Rs. 1,810 Crore on Gains From Unlisted Shares

NSE declared a dividend of Rs. 80 per share for the Quarter 4 (Q4) of its fiscal year, following robust profits driven by gains from unlisted shares.

The National Stock Exchange’s (NSE) net profits rose by a whopping 19% to Rs 1,810 crore in Q4, compared to the same period last year.

This was largely attributed to NSE’s gains from its investible surplus investment in unlisted equity stock. The unlisted shares portfolio recorded a marked improvement in value from Rs 2,189 crore at the end of March 2020 to Rs 2,668 crore as of March 2021.

The dividend declared for FY21 was higher than the dividend declared for FY20 – Rs 70 per share – after the Indian stock exchange reported a record net profit of Rs 7,095 crore during FY20-21 which was an increase of 10.6% compared with the previous year.

This marks yet another successful financial year for NSE despite global economic challenges due to COVID-19 pandemic.

Dividend of Rs. 80 Per Share Declared for FY20

The National Stock Exchange (NSE) has declared a dividend of Rs. 80 per share for the financial year 2020, with net profits increasing by 19% YoY to Rs 1,810 crore. This is the fourth consecutive year of double-digit growth for NSE and the highest-ever dividend declared since its inception in 1992.

The results were driven by a strong performance in unlisted stocks and improved operational efficiency. The exchange’s income from unlisted stocks surged to Rs 11,489 crore for the quarter ended March 2020, up 19% from last year’s corresponding period of Rs 9,603 crore.

Meanwhile, total expenses rose 15%, from Rs 315 crore to Rs 362 crore during the period.

This dividend will be paid out on June 15th to the shareholders that are listed on NSE as of April 23rd, 2020. It is yet another testament to NSE’s successful business strategy and ability to capitalize on market opportunities while providing long-term value to its shareholders.

Revenue From Operations Up 12% Due to Higher Transaction Charges

Revenue from operations for the NSE Q4 was up 12% year-on-year due to higher transaction charges. The stock exchange earned ₹882 crore in fiscal 2019-20, compared to ₹789 crore in the corresponding period of the previous year.

The rise in revenues can be attributed to an increase in fees and transaction charges, which were Rs 333 crores compared to Rs 287 crores recorded in the previous year.

This increase was driven by higher volumes of trades, both by institutional and retail investors, resulting from increased market volatility due to macroeconomic factors.

Additionally, NSE earned a significant chunk of its revenues from non-trading income such as corporate membership fee and listing fee which stood at Rs 318 crores compared to Rs 273 crores last year.

This too can be attributed to the increasing participation in India’s capital markets by domestic and global investors.

Earnings From Unlisted Shares Grow 19% to Rs. 632 Crore

The National Stock Exchange (NSE) has announced a 19% growth in unlisted shares earnings in its fourth quarter results, taking its total earnings up to Rs. 632 crore.

This is particularly impressive given the tough economic conditions this year, showing the resilience of their stock trades.

To reward shareholders for this success, NSE has declared a dividend of Rs. 80 per share. This dividend is higher than the previous year’s dividend of Rs. 68 per share, indicating the trust and confidence investors have in this company.

Some of the factors that have contributed to NSE’s record net profit include:

It is clear that NSE has adopted an effective strategy for navigating these challenging times, reinstating investor confidence and paving the way for greater future success.

NSE to Consider Raising Up to Rs. 5,000 Crore Through IPO

The world’s largest derivatives market, the National Stock Exchange (NSE), is all set to raise up to Rs. 5,000 crore through an initial public offering (IPO).

This comes on the back of NSE’s latest quarterly report which revealed a 19% increase in profits from unlisted shares.

The IPO is likely to be one of the biggest ever in India and will be used to fund NSE’s expansion plans. The exchange has stated that it will use the funds to develop new products and technology and further strengthen its position as a global financial market leader.

The offer will consist of fresh equity shares, as well as part of NSE’s existing shares held by investors like Goldman Sachs and SoftBank Group.

NSE’s decision to go public is indicative of the company’s confidence in its operations, performance and outlook in the near future. With an estimated market cap of `45,000 crore, this would be one of India’s biggest IPOs if successful.

As the Indian stock market continues to reach new highs thanks to record-breaking inflows from FIIs, NSE’s IPO could be well-timed for investors looking for exposure in a blue-chip stock with a great track record.

NSE Shares Rally in Gray Market Ahead of Potential Listing

The National Stock Exchange of India (NSE) is one of the most respected exchanges in the world, and investors are keeping a close eye on it as its unlisted shares rally in the gray market ahead of a potential listing.

In fact, after the exchange announced its Q4 results, with net profit rising 19% YoY to Rs 1,810 crore and dividend declared at Rs 80 per share, the NSE shares were up 11% in the non-public market.

All this means that investors are now eager to get their hands on some of these unlisted NSE shares, which has led to an increase in demand for them.

This is further bolstered by the fact that the exchange recently cleared some regulatory hurdles and is closer to getting listed on a public exchange.

The increased demand for NSE shares has been further fueled by speculation that they could soon be trading on a leading Indian stock exchange.

This could mean more liquidity for investors who want to get access to these unlisted shares and make potentially lucrative gains when they are eventually listed.

For all these reasons, investor confidence in NSE’s future is high, and this could be good news for those eager to take advantage of potential gains once trading begins.

Conclusion

The National Stock Exchange (NSE) reported a 19% YoY rise in its profits from unlisted shares for the fourth quarter, leading to a dividend of Rs. 80 per share for investors.

This is indicative of the strong performance of the Indian stock markets, with the NSE registering double-digit growth despite the pandemic.

These impressive results and the accompanying dividend are further evidence that the Indian share market is a great option for investors who want to experience long-term capital appreciation.

With the NSE continuing to provide a secure, solvent marketplace for unlisted shares, investors can continue to reap the rewards of India’s share market.

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