NSDL Turns Ex-Dividend This Week; First Payout Since IPO

National Securities Depository Ltd. will trade ex-dividend this week, marking its first shareholder payout since the company's listing in August. The NSDL board has recommended a final dividend of Rs 2 per equity share, according to a stock exchange filing.

The proposal will be placed before shareholders for approval at the company's Annual General Meeting (AGM) scheduled for Sept. 29.

The record date for determining shareholders' eligibility has been fixed as Friday, Sept 19. That means, investors who own NSDL shares in their demat account as of that date will qualify for the dividend.

Once approved, the dividend is expected to be credited on or before Oct. 28. The share price will adjust in proportion to the dividend at the ex-date.

Payments will be made subject to tax deduction at source, the company confirmed.

This dividend would mark NSDL's first corporate action since its initial public offering (IPO) earlier this year. The company raised Rs 4,011 crore, making it one of the biggest IPOs in the primary market this year.

Shares were priced at Rs 800 apiece and debuted on Dalal Street on Aug. 8 at Rs 880, thus delivering 10% listing gains for investors.

Incorporated in 1996, NSDL operates as one of India's two depositories. The company's main competitor is Central Depository Services Ltd. (CDSL).

Since its listing on Aug 8., NSDL shares have significantly surged, with a gain of nearly 40%.

The stock is currently trading at Rs 1,289, with a relative strength index of 53.58, which suggests neutral market sentiment.

Motilal Oswal has recently initiated coverage on NSDL, issuing a 'neutral' rating and a 12-month price target of Rs 1,200. The target price implies a potential downside of 8% from current market price.