In a significant move underscoring its robust financial performance, the National Stock Exchange (NSE) has declared a groundbreaking 9000% dividend per equity share alongside a bonus share issuance in a 4:1 ratio. The announcements were made following the board meeting held on Friday, marking a milestone for the leading stock exchange.
The NSE's dividend proposal of ₹90 per share, subject to shareholder approval at the upcoming Annual General Meeting (AGM), reflects the company's commitment to rewarding its stakeholders. This big dividend payout, if greenlit, is set to be distributed within 30 days from the date of the AGM.
Additionally, the NSE board has greenlit the issuance of bonus shares, capitalizing on reserves to issue four new shares for every existing share held. This strategic move aims to bolster shareholder value and liquidity further while underlining the exchange's strong financial position.
While the exact record dates for the bonus shares and dividend payout are yet to be determined, the NSE's proactive approach to communicating these developments underscores transparency and shareholder engagement.
The announcement comes hot on NSE's impressive Q4 FY24 financial results, where the exchange reported a staggering 20% year-on-year rise in net profit, amounting to ₹2,488 crores. Consolidated revenue from operations surged by 34% year-on-year to ₹4,625 crores, buoyed by robust trading volumes across cash markets, equity futures, and options.
Moreover, the exchange witnessed substantial growth in average daily traded volumes (ADTVs) across various segments, with cash markets recording an ADTV of ₹1,11,687 crores, equity futures at ₹1,79,840 crores, and equity options at ₹75,572 crores for Q4 FY24.
Highlighting its commitment to risk management and regulatory compliance, NSE also announced significant contributions to augment the Core Settlement Guarantee Fund corpus, aligning with SEBI's directives.
In summary, the NSE's dividend and bonus share announcements and its stellar financial performance underscore its position as a market leader committed to maximizing value for its shareholders while upholding the highest standards of governance and transparency.
