The much-awaited initial public offering (IPO) of National Securities Depository Ltd (NSDL) opened for subscription on Wednesday, marking a significant milestone in India’s capital markets. As the country’s first and largest depository, NSDL’s listing is being closely tracked by institutional and retail investors alike.
Offer Details
The IPO is entirely an Offer for Sale (OFS) worth ₹4,012 crore by existing shareholders, including IDBI Bank, NSE, and State Bank of India. No fresh equity will be issued, meaning the proceeds go directly to the selling shareholders.
The issue comprises 5.01 crore equity shares, with a price band of ₹760 to ₹800 per share. Retail investors can place bids in lots of 18 shares and in multiples thereafter. The IPO closes on August 1, with listing expected on the BSE on August 6.
In the unlisted market, NSDL was commanding a grey market premium (GMP) of around 16%, indicating a likely premium listing.
Market Position and Business Model
Established in 1996 under the Depositories Act, NSDL revolutionised India’s capital markets by introducing paperless securities. Today, it is a systemically important Market Infrastructure Institution (MII) and holds over 90% of the value of demat assets in India.
Its services span a wide range of asset classes—equities, debt, mutual funds, REITs, InvITs, AIFs, sovereign gold bonds, and more. NSDL has also built a vast footprint, with a presence in over 99% of Indian PIN codes and a global client base across 186 countries.
The company operates on a stable, annuity-style revenue model, driven by issuer fees, transaction charges, and account maintenance. This ensures predictable cash flows with low working capital needs.
Financials and Valuation
For FY25 (projected), NSDL reported:
- Revenue: ₹1,420 crore (up 12% YoY)
- PAT: ₹343 crore (up 25% YoY)
- EBITDA margin: 34.71%
The IPO values the company at a P/E of 46.62x and P/B of 7.98x. In comparison, its listed peer Central Depository Services (India) Ltd (CDSL) trades at 60.43x P/E and 18.08x P/B. While CDSL is more retail-focused, NSDL commands the lion’s share in terms of asset value and institutional accounts.
In addition to its core depository business, NSDL has built complementary revenue streams through its subsidiaries:
- NSDL Database Management Ltd (NDML): Manages KYC, e-governance, and SEZ services
- NSDL Payments Bank Ltd (NPBL): Operates in the digital payments and banking ecosystem
These ventures offer growth potential beyond the traditional depository vertical and help cushion cyclical slowdowns in capital markets.
Analyst Take
Most brokerage houses have given the IPO a ‘Subscribe’ rating for long-term investors.
However, analysts also note that since this is a pure OFS with no fresh fund infusion, growth capital is not being raised, and valuation is on the higher side relative to earnings.
NSDL’s IPO offers investors a rare opportunity to own a piece of India’s core market infrastructure. While the issue is fully priced, the company’s near-monopoly status, strong balance sheet, and diversified operations make it an attractive long-term bet, especially in a growing capital market like India.
IPO Snapshot: NSDL
| Details | Value |
| Issue Size | ₹4,012 crore (OFS) |
| Price Band | ₹760 – ₹800 |
| Shares on Offer | 5.01 crore |
| Lot Size | 18 shares |
| Subscription Period | July 30 – August 1 |
| Listing Date (expected) | August 6, 2025 |
| Exchange | BSE |
| GMP (approx.) | ₹125 (16%) |
Disclaimer: This article is for informational purposes only and does not constitute investment advice. The views expressed by brokerages are their own and not those of Capital Mirror.
