How NSE helped Zerodha get off the ground, according to Nithin Kamath

Ahead of the National Stock Exchange’s initial public offering (IPO), Zerodha founder and CEO Nithin Kamath has recalled how the exchange supported the brokerage in its early years, including waiving its membership fee.

In a post on X, Kamath said the NSE was one of the reasons Zerodha decided to become a brokerage. He said the exchange had a free trading platform that brokers could offer to their clients at the time.

Kamath also recalled that NSE officials were “incredibly welcoming” when he approached the exchange to enquire about membership.

NSE waived Zerodha’s membership fee

Kamath said the exchange waived Zerodha’s membership fee after officials realised that the newly launched brokerage did not have much money.

“When they realised we didn't have a lot of money, they even waived our membership fee of ~₹5 lakh,” Kamath said.

He added that this was “just one of many instances” in which the NSE had supported Zerodha throughout its journey.

Kamath clarified that his post was not a recommendation to subscribe to the NSE IPO, but said he expected the issue to be successful.

“In many ways, Zerodha is around only because of the NSE,” he said, adding that it was the only company towards which he felt “a sense of obligation”.

Kamath also praised India’s market infrastructure and regulatory framework, saying they were probably ahead of those in most Western markets.

He said Indian stock exchanges also act as “first-level regulators”, taking on some functions that brokers traditionally perform in other markets.

“If it weren't for that, I sometimes wonder what the point of brokers like us would even be,” Kamath said.

NSE IPO details

The NSE IPO will open for subscription on September 17 and close on September 21.

The exchange has set a price band of ₹1,700-₹1,785 per share, with a face value of ₹1. Each lot will comprise eight shares.

At the upper end of the price band, the IPO could be valued at ₹22,561.57 crore, making it the second-largest IPO in India’s history.

Retail investors have been allocated 35% of the issue. Of the remaining portion, 50% is reserved for qualified institutional buyers, while the rest is earmarked for non-institutional investors.