All You Need to Know About NSDL’s $400 Million IPO

India’s capital markets are about to witness a major event. National Securities Depository Limited (NSDL), one of India’s two major depositories, is preparing to go public with a $400 million initial public offering (IPO) in July 2025. 

The move comes at a time of heightened activity in the pre-IPO market and strong investor interest in market infrastructure institutions.

Here’s a complete breakdown of what the IPO involves, what NSDL does, how it compares with its only competitor Central Depository Services (CDSL), and key things you need to know.

IPO Details at a Glance

Parameter	Details
IPO Size	50.15 million shares
Estimated Value	$400 million (₹3,330 crore)
IPO Type	Offer-for-Sale (OFS)
Likely Launch Date	July 2025
IPO Approval Validity	Until July 31, 2025
Lead Managers	ICICI Securities, Axis Capital, HSBC, IDBI Capital, HDFC Securities, Motilal Oswal, SBI Capital Markets
Registrar	MUFG Intime India Pvt Ltd.

NSDL IPO: Who’s Selling What?

The breakdown of shares offered through the OFS is as follows:

• IDBI Bank Ltd: 2,22,20,000 equity shares
  
• NSE: 1,80,00,001 equity shares
  
• Union Bank of India: 5,01,45,001 equity shares
  

Notably, NSDL itself will not gain proceeds from this offering.

Source: News 18

What’s Driving the Buzz?

Several developments have added to the anticipation around NSDL’s IPO:

1. Strong Pre-IPO Market Interest:
   NSDL’s unlisted shares have surged by 40% in two months, currently trading in the ₹1,200–1,250 range, up from ₹900 in April 2025.
   
2. Eased Transfer Rules:
   A new ISIN number, introduced in April 2025, shortened the share transfer time in unlisted markets from 4–6 months to just 1–2 days.
   
3. Retail Demand & NSE Effect:
   Rising interest among retail investors and a price rally in NSE’s unlisted shares (a major NSDL shareholder) have also contributed to the rise.
   
4. Addendum to DRHP:
   NSDL filed an addendum to reduce the issue size from 57.26 million to 50.15 million shares, making allotment tougher and demand higher in the unlisted market.

Source: Business today

What Does NSDL Do?

NSDL is a securities depository. Think of it as the digital locker where your shares and other securities are stored safely in dematerialised form. It eliminates the need for physical paper certificates, reducing fraud, theft, and delivery delays.

Here’s what NSDL handles:

• Dematerialisation of Securities: Converting physical shares into electronic form.
  
• Account Maintenance: Holding securities for investors in demat accounts.
  
• Settlement Services: Facilitating the transfer of securities between the buyer and the seller.
  
• Corporate Actions: Credit of dividends, bonuses, and interest directly into investors’ accounts.
  
• KYC Services: NSDL also manages Know Your Customer (KYC) registration for capital market participants through NSDL KRA.
  

It was established in 1996 and is promoted by the National Stock Exchange (NSE). NSDL primarily caters to institutional clients—mutual funds, banks, and large corporations—handling massive volumes of high-value transactions. 

And What About CDSL?

Central Depository Services (India) Limited (CDSL) is NSDL’s only competitor in India. It was formed in 1999 and is promoted by the Bombay Stock Exchange (BSE).

CDSL focuses more on retail participation and has become the go-to depository for most online brokerage firms and DIY investors.

NSDL vs CDSL – Comparative Analysis

Factor	NSDL	CDSL
Promoter	NSE	BSE
Client Focus	Institutional clients	Retail investors
Demat Accounts	3.97 crore	15.5 crore
Market Share (AUC)	Largest in Assets Under Custody (AUC)	Smaller AUC, higher demat count
Listed?	IPO in July 2025	Listed; trades at ₹1,740 (BSE)
Revenue (FY25)	₹1,420 crore	₹1,082 crore
Net Profit (FY25)	₹343 crore	₹526 crore
Profit Margin	24.2%	48.6%

Source: IndMoney

Despite lower revenue, CDSL’s efficient cost structure allows it to clock higher profits. NSDL, on the other hand, deals with higher ticket transactions from fewer clients, which brings in higher revenue but with thinner margins.

What’s Next?

With the IPO approval set to expire on July 31, 2025, market experts expect the public issue to be launched well before that. A lot of attention is also on the final price band, which will determine how the listing performs relative to the current unlisted market range of ₹1,200–1,250.

Final Word

NSDL’s upcoming IPO marks a major event in the capital markets, not only because of its size but also due to its role in the financial infrastructure. Whether you’re comparing it to CDSL or observing trends in pre-IPO activity, this listing is shaping up to be a key development for 2025.

FAQs on NSDL IPO

1. When will NSDL’s IPO open?
The IPO is expected to hit the market by July 2025, before SEBI’s approval expires on July 31, 2025. While the exact dates are yet to be announced, the buzz in the unlisted market suggests an imminent launch.

2. What is the size and nature of the IPO?
NSDL plans to raise approximately $400 million through the sale of 50.15 million shares via an Offer-for-Sale (OFS). This means only existing shareholders will sell their stake; no new shares will be issued.

3. Will NSDL benefit financially from this IPO?
Not directly. Since this is a pure OFS, the company itself won’t receive any funds from the IPO proceeds. However, listing can boost transparency, brand equity, and access to capital in the future.

4. How does NSDL compare to CDSL?
NSDL holds the edge in terms of assets under custody and serves mostly institutional investors. CDSL, on the other hand, dominates the retail demat account segment and enjoys higher profit margins due to its leaner cost model.

5. What’s the current unlisted market price of NSDL shares?
As of June 2025, NSDL’s unlisted shares are trading at around ₹1,200–1,250 apiece, up nearly 40% from ₹900 in April. The price surge reflects high demand due to improved share transfer rules and IPO expectations.

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