What investors should know about NSDL's dividend policy ahead of its IPO

NSDL Dividend Policy and History: The ₹4,011.60 crore National Securities Depository Ltd (NSDL) IPO, which is exclusively an offer for sale (OFS) of 5.01 crore shares, will open for subscription on Wednesday, July 29. The issue, with a price band of ₹760 to ₹800 per equity share, will conclude on August 1.

NSDL IPO dividend policy explained: What investors should know

NSDL, in its red herring prospectus (RHP), said that the declaration and payment of dividends on equity shares, if any, will be recommended by the company's Board and approved by its shareholders.

Before declaring the dividend, the Board, as per the company, shall consider certain financial, internal, and external metrics, including funds needed to finance the working capital requirements, meet expenses to upgrade and maintain the infrastructure, and profit earned during previous fiscal years.

"Our Company may also, from time to time, pay interim dividends. The objective of the dividend policy is to lay down the parameters to be considered by the Board before declaring or recommending dividend to the shareholders for a financial year," NSDL said.

The company said that the amount of dividend paid previously is not necessarily indicative of dividend amounts, if any, in the future.

"There is no guarantee that any dividends will be declared or paid or the dividend amount thereof will be increased in the future," it said.

NSDL dividend history: Has the company paid dividends in recent years?

NSDL has a formal dividend policy and has announced dividends on equity shares during the last three financial years.

The company in its RHP said it declared a 50% dividend on the equity shares during the financial years 2023 and 2024. For FY25, the depository's board has recommended a dividend of 100% on shares, which is subject to approval of the shareholders of the company at the annual general meeting.