National Securities Depository Limited (NSDL), established in August 1996, stands as one of the largest and most advanced securities depositories in the world, playing a crucial role in India's capital market infrastructure. The company has developed a state-of-the-art platform to facilitate the dematerialization and settlement of securities in the Indian financial markets, helping to eliminate the long-standing issues associated with paper-based trade settlements such as bad delivery and delayed transfer of title.

The enactment of the Depositories Act of 1996 enabled NSDL’s formation, modernizing India’s capital market and introducing faster, safer, and more efficient securities transactions.

IPO Details

The National Securities Depository Limited IPO is a Book Built Issue with an offer size of ₹4,011.60 Crores, comprising entirely an Offer for Sale (OFS) of 5.01 crore equity shares. The subscription window is scheduled from 30 July 2025 to 1 August 2025, with allotment expected by 4 August 2025. The shares will be listed on both BSE and NSE around 6 August 2025.

The IPO's price band is fixed between ₹760 and ₹800 per share, valuing the company’s market capitalization at approximately ₹16,000 Crores at the upper price band. The IPO lot size is 18 shares, with a minimum retail investment of ₹14,400 and a High Net Worth Individual (HNI) minimum investment of 14 lots (252 shares), amounting to ₹2,01,600.

A consortium of leading financial institutions serves as book running lead managers for this IPO, including ICICI Securities Limited, Axis Capital Limited, HSBC Securities and Capital Markets (India) Private Limited, IDBI Capital Markets & Securities Limited, Motilal Oswal Investment Advisors Limited, and SBI Capital Markets Limited. MUFG Intime India Private Limited acts as the registrar.

Grey Market Premium and Market Sentiment

The Grey Market Premium (GMP) for the NSDL IPO currently stands at ₹144, suggesting an expected listing price around ₹944, which translates to a strong premium of nearly 18% over the upper price band. While GMP reflects investor sentiment in unofficial markets, it should be considered informational and not a guaranteed indicator of listing gains.

Financial Performance

NSDL has demonstrated consistent and robust financial growth over the last three fiscal years:

• FY 2023: Revenue ₹10,998.14 Million | EBITDA ₹3,168.01 Million | PAT ₹2,348.10 Million

• FY 2024: Revenue ₹13,657.05 Million | EBITDA ₹3,684.93 Million | PAT ₹2,754.45 Million

• FY 2025: Revenue ₹15,351.87 Million | EBITDA ₹4,729.61 Million | PAT ₹3,431.24 Million

The company’s pre- and post-issue EPS stands at ₹17.16 for FY24, with a P/E ratio of 46.62x pre-issue and 46.63x post-issue, compared with an industry P/E ratio of 68x. The financial metrics also indicate a strong Return on Capital Employed (ROCE) of 22.70%, Return on Equity (ROE) of 18.60%, and Return on Net Worth (RoNW) of 17.11%, indicating efficient capital use and profitability.

Company Profile

NSDL is a professionally managed entity without an identifiable promoter. It plays a critical role as the backbone of India’s securities market infrastructure by holding and settling most securities in dematerialized electronic form. This system has significantly reduced settlement risks and operational inefficiencies.

IPO Objectives

As this IPO is entirely an Offer for Sale, NSDL will not receive any proceeds from the issue. The sale proceeds will go to existing selling shareholders after deducting offer-related expenses.

How to Check IPO Allotment

Investors can verify their IPO allotment status from 4 August 2025 onward on the registrar’s website by selecting the IPO, entering their application number, PAN, or DP Client ID, and submitting the details.

Investment Outlook

Given NSDL’s pivotal role in India’s capital markets, consistent financial growth, and strong market infrastructure, the IPO is viewed as fairly priced with a potential for listing gains, as suggested by the GMP of ₹144. Risk-tolerant investors seeking to gain exposure to the securities market infrastructure sector may consider applying.

Disclaimer:
This article is for informational purposes only and does not constitute financial advice. Investors should consult qualified financial advisors and carefully evaluate all risks before investing in IPOs. Past performance does not guarantee future results. The information is based on publicly available data as of the publication date and may change without notice.

The Upcoming IPOs in this week and coming weeks are Highway Infrastructure, Flysbs Aviation, Part Electricals & Engineering, Jyoti Global Plast, M&B Engineering, Cash Ur Drive Marketing, Renol Polychem, Jyoti Global Plast, Takyon Networks, Mehul Colours, Sri Lotus Developers & Realty, Jyoti Global Plast, B.D. Industries (Pune), NSDL.

The Current active IPO are Aditya Infotech, Lakshmi India Finance, Kaytex Fabrics, Umiya Mobile, Repono, Shree Refrigerations, Sellowrap Industries, Shanti Gold International, Patel Chem Specialities.

Start your Stock Market Journey and Apply in IPO by Opening Free Demat Account in Choice Broking FinX.

Join our Trading with CA Abhay Telegram Channel for regular Stock Market Trading and Investment Calls by CA Abhay Varn - SEBI Registered Research Analyst.