Will the Rs 4,000 Cr NSDL IPO Deliver Long-Term Value for Shareholders?

India’s financial markets are built on more than just headlines and trading apps. Behind the scenes, a robust infrastructure keeps every transaction, ownership change, and record secure. And one of the key players powering that system is National Securities Depository Ltd (NSDL). 

For decades, NSDL has been the silent enabler of stock market efficiency, quietly managing the digital ownership of billions in assets. Now, it’s stepping out of the background and onto centre stage.

From July 30 to August 1, NSDL’s much-anticipated ₹4,011.6 crore initial public offering (IPO) will open for public subscription. The company won’t be raising fresh capital; instead, its major shareholders are offloading part of their stakes via a full Offer For Sale (OFS). The listing is expected on August 6, and if successful, this will make NSDL the second depository in India to go public, after CDSL’s listing in 2017.

With decades of market trust, a nationwide footprint, and a profitable business model, NSDL’s IPO is bound to spark conversations. But the core question remains: Can this offer deliver long-term value? 

Here’s a detailed breakdown to help you understand everything about the offering.

NSDL IPO Details

Offer Price	₹760 to ₹800 per share
Face Value	₹2 per share
Opening Date	30 July 2025
Closing Date	1 August 2025
Total Issue Size (in Shares)	5,01,45,001
Total Issue Size (in ₹)	₹4,011.60 Cr.
Issue Type	Bookbuilding IPO
Lot Size	18 Shares
Listing at	BSE

Allocation of Shares 

• Allocation quotas: up to 50 % to QIBs (Qualified Institutional Buyers); at least 15 % to NIIs (Non‑Institutional Investors); minimum 35 % reserved for retail investors
  
• Employee reservation: 85,000 equity shares set aside for eligible employees, who get a discount of ₹76 per share

Investors can bid for a minimum of 18 shares and in multiples thereof.  The following table depicts the minimum and maximum investment by Individual Investors (Retail) and HNI in terms of shares and amount.

Investor Category	Lots	Shares	Investment Amount
Retail (Min)	1	18	₹14,400
Retail (Max)	13	234	₹1,87,200
S-HNI (Min)	14	252	₹2,01,600
S-HNI (Max)	69	1,242	₹9,93,600
B-HNI (Min)	70	1,260	₹10,08,000

Source: Chittorgarh

NSDL IPO Grey Market Premium (NSDL IPO GMP)

According to platforms tracking grey market activity, NSDL IPO GMP has climbed to the range of ₹135–₹137, suggesting strong investor interest. Based on the upper end of the price band at ₹800, this translates to an expected listing gain of up to 20%, highlighting bullish sentiment ahead of the IPO’s debut.

Objectives of the Issue

Though NSDL gains no proceeds from the IPO, the stated objectives are as follows:

• Carry out the Offer for Sale of up to 5.01 crore equity shares by the selling shareholders
  
• Achieve the benefits of listing the equity shares on BSE and NSE

Company Overview

National Securities Depository Limited (NSDL) is a SEBI-registered Market Infrastructure Institution (MII), incorporated in 2012. However, it has operated since 1996, when it became India’s first depository to dematerialise securities and revolutionise how shares are held and transferred.

Core Activities

• Acts as a securities depository for equities, bonds, mutual fund units, and government securities
  
• Maintains electronic records of security allotment and ownership
  
• Facilitates key services such as:
  
  • Dematerialisation and rematerialisation of securities
    
  • Trade settlements in coordination with stock exchanges
    
  • Off-market transfers and pledging of securities
    
  • Execution of corporate actions (dividends, rights issues, etc.)
    
  • Asset servicing and account statements (CAS)
    
  • E-voting and non-disposal undertakings (NDU) for governance and compliance
    

Subsidiaries and Additional Services

• NSDL Database Management Limited (NDML):
  
  • Delivers services in e-governance, regulatory tech, KYC solutions, insurance repositories, SEZ automation, and National Skills Registry.
    
• NSDL Payments Bank Limited (NPBL):
  
  • Operates as a business-to-business digital payments bank
    
  • Offers services such as AePS, micro-ATMs, domestic remittances, UPI, POS machines, and distribution of third-party products like insurance and mutual funds
    

With 2.8 crore demat accounts spread across 99% of India’s PIN codes and over 189 countries, NSDL plays a crucial role in maintaining trust and transparency in the Indian capital market system.

Financial Strength

Between financial years ending March 2024 and March 2025, NSDL reported a 12% increase in revenue, rising from ₹1,365.71 crore to ₹1,535.19 crore. During the same period, its profit after tax (PAT) grew by 25%, jumping from ₹275.45 crore to ₹343.12 crore — reflecting strong operational efficiency and profitability.

In addition to this, NSDL’s total assets rose significantly to ₹2,984.84 crore in FY25 from ₹2,257.74 crore in FY24. The company also recorded growth in EBITDA, which climbed to ₹492.94 crore in FY25. Its net worth and reserves continued to strengthen, indicating a robust balance sheet position going into its IPO.
Source: Chittorgarh

SWOT Analysis

STRENGTHS	WEAKNESSES
Operates as India’s largest depository with ~89% market share in dematerialised assets Nationwide and international reach with presence in almost every Indian district Diversified services beyond core depository operations, via subsidiaries NDML and NPBL Consistent profitability and revenue growth over the past three years	No fresh capital raised in the IPO, which limits immediate growth opportunities Heavy reliance on regulatory permissions and compliance, particularly with SEBI’s evolving norms Higher ownership concentration among a few institutional shareholders prior to the IPO
OPPORTUNITIES	THREATS
Growing demand for digital asset servicing and compliance infrastructure Potential to expand financial inclusion through NSDL Payments Bank and micro-financial products Increasing use of e-governance services and KYC platforms in public and private sectors	Competition from CDSL, which is already listed and has a larger retail investor base Regulatory uncertainties, particularly with respect to ownership norms and operational frameworks Volatility in capital markets can impact transaction volumes and thus revenue

Conclusion

NSDL’s ₹4,011.6 crore IPO offers investors a chance to engage with one of India’s foundational market players. While it’s a pure OFS and doesn’t bring fresh capital into the company, the listing aligns with regulatory compliance and public visibility goals. With a broad operational base, steady financials, and diversified service offerings, NSDL enters the market not as a newcomer, but as a well-established institution finally opening its doors to public shareholders. How it performs post-listing will be key to judging whether this historic move translates into sustainable, long-term market value.

Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & the certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.