Before NSE’s listing, here’s a look at how the two major Indian stock exchanges have rewarded shareholders through dividends, bonus shares, buybacks and stock splits
New Delhi: The National Stock Exchange (NSE) is set to enter the public markets, with its much-awaited initial public offering (IPO) scheduled to open for subscription on September 17 and close on September 21. The company’s shares are expected to be listed on September 24.
One of the most interesting aspects of the listing is that NSE shares will be listed on the BSE, while BSE shares are already listed on the NSE. This will bring India’s two leading stock exchanges into a unique situation where each exchange’s shares are traded on the other’s platform.
Ahead of NSE’s listing, investors may also want to know how the two exchanges have rewarded their shareholders over roughly the past decade through dividends, bonus shares, buybacks and stock splits.
BSE Has Paid Dividends Multiple Times
BSE was listed on the stock market in 2017. Since its listing, the exchange has distributed profits to shareholders through dividends on multiple occasions.
The company has also issued bonus shares. Bonus shares are additional shares given to existing shareholders free of cost based on the number of shares they already hold.
BSE has also undertaken two share buybacks so far, giving shareholders an opportunity to sell their shares back to the company under the applicable buyback arrangements.
However, BSE has never carried out a stock split. The face value of its shares currently stands at ₹2 per share.
NSE Has Also Paid Dividends Regularly
NSE’s shares have been held and traded in the unlisted market even before the exchange’s planned stock-market listing. Available data indicates that the exchange has regularly rewarded shareholders with dividends over the past 10 years.
NSE has also issued bonus shares twice since 2016. Its most recent bonus issue took place in November 2024, while the earlier bonus issue was announced in November 2016.
When Did NSE Split Its Shares?
NSE carried out a stock split in December 2016.
At the time, one share with a face value of ₹10 was split into 10 shares with a face value of ₹1 each.
For example, if an investor held one NSE share before the split, the investor would have held 10 shares after the split. However, a stock split by itself does not increase the total value of an investor’s holding because the market price is adjusted proportionately.
BSE, on the other hand, has not undertaken a stock split so far.
What Is NSE’s IPO Price Band?
NSE has set a price band of ₹1,700 to ₹1,785 per share for its IPO. The issue, valued at around ₹22,569 crore, is scheduled to open on September 17 and close on September 21.
If completed at this size, the NSE IPO would rank as the second-largest IPO in India, behind Hyundai Motor India’s approximately ₹27,870-crore IPO in 2024.
The NSE issue is entirely an Offer for Sale (OFS). This means the company will not issue new shares as part of the IPO. Instead, existing shareholders will sell a portion of their holdings.
Since the shares are being sold by existing shareholders, the money raised through the OFS will go to those selling shareholders rather than to NSE.
What Is NSE’s Grey Market Price?
NSE’s upcoming IPO has also generated significant interest in the grey market.
According to available information, NSE shares were trading at around ₹2,003 in the grey market, about ₹218 above the upper IPO price band of ₹1,785.
This implies a grey market premium of approximately 12.2% over the upper end of the IPO price band.
However, the grey market is unofficial, and its premium should not be treated as a guarantee of the stock’s listing price or post-listing returns.
NSE vs BSE: What Is the Key Difference?
Looking at corporate actions over roughly the past decade, both exchanges have consistently rewarded shareholders through dividends and bonus shares.
BSE has additionally conducted two share buybacks, but it has never split its shares. NSE, meanwhile, has issued dividends and bonus shares and carried out a stock split in 2016.
The upcoming NSE IPO could mark a significant milestone for India’s capital markets. Once NSE is listed, both of the country’s leading stock exchanges will be publicly listed companies, with NSE shares trading on BSE and BSE shares already trading on NSE.
Investors will now closely watch the NSE IPO subscription beginning September 17 and the exchange’s expected September 24 listing.
