NSDL IPO Receives Strong Response from Investors on Final Day

National Securities Depository Limited (NSDL), one of the world's largest depositories, has concluded its IPO bidding process on 01 August 2025, with the issue being subscribed 3.36 times overall. This strong subscription reflects investor confidence in the company’s consistent financial growth and dominant position in the Indian capital market infrastructure.

About NSDL and its Role in Indian Capital Markets

Founded in August 1996, NSDL pioneered electronic securities settlement in India, resolving inefficiencies of the paper-based system. Before NSDL’s emergence, trade settlements in the Indian stock market were plagued with problems like bad delivery and delayed transfer of title. The Depositories Act of 1996 laid the foundation for setting up this robust depository infrastructure, which today handles the majority of securities held in demat form in India.

NSDL has become a backbone of the Indian securities market, offering services like account maintenance, dematerialization, settlement of trades, corporate actions, and more. Its state-of-the-art infrastructure ensures secure, efficient, and seamless operations for market participants across India.

IPO Details and Issue Structure

The NSDL IPO is a Book Built Issue of ₹4,011.60 Crores, entirely an Offer for Sale (OFS) of 5.01 crore equity shares. Being an OFS, the company will not receive any proceeds, and all funds will go to the selling shareholders.

• Price Band: ₹760 to ₹800 per share

• Lot Size: 18 shares

• Minimum Investment (Retail): ₹14,400

• Minimum Investment (HNI): 252 shares (14 lots) or ₹2,01,600

• Tentative Listing Date: August 6, 2025

• Listing on: BSE and NSE

Market Capitalisation at ₹800 per share is estimated at ₹16,000 crores.

Strong Demand and Subscription Status

As of 12:00 PM on 01 August 2025, the NSDL IPO was subscribed 3.36 times, with robust demand particularly seen from Qualified Institutional Buyers (QIBs) and retail investors.

This solid subscription is indicative of widespread confidence in NSDL's business model, financial strength, and long-term prospects in the growing Indian capital market ecosystem.

Anchor Investors Show Strong Interest

Prior to the IPO opening, Anchor Investors contributed ₹1,201.43 Crores, subscribing to 1,50,17,999 equity shares at ₹800 each. This pre-IPO allocation signifies strong institutional confidence in the company.

Grey Market Premium (GMP) Indicates Likely Listing Gains

The Grey Market Premium (GMP) of NSDL IPO is currently around ₹144, implying an expected listing price of ₹944 per share, which translates to a potential listing gain of 17.98%. However, investors are reminded that GMP is an unregulated market and is not recommended as a basis for investment decisions.

The GMP data, although unofficial, reflects positive sentiment around the IPO and shows a strong interest from speculative markets.

Financial Highlights and Consistent Growth

NSDL has posted robust financial performance over the past three 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

This indicates steady growth year-on-year, demonstrating strong operational efficiency and demand for NSDL’s services.

Valuation Metrics and Key Ratios

The IPO comes with a pre-issue and post-issue EPS of ₹17.16. The P/E ratio is around 46.62x, which compares favourably against the industry average of 68x.

Other key financial ratios include:

• ROCE: 22.70%

• ROE: 18.60%

• RoNW: 17.11%

These metrics suggest that the IPO is fairly priced, making it appealing for investors looking for exposure to the capital market infrastructure space.

Allotment and Listing Information

The IPO allotment is scheduled for August 4, 2025, and investors will be able to check their allotment status via the registrar’s website:

Steps to check NSDL IPO allotment status:

1. Go to the IPO allotment status page (MUFG Intime India).

2. Select National Securities Depository Limited from the dropdown.

3. Enter your Application Number, PAN, or DP Client ID.

4. Submit to view allotment result.

Once allotted, shares will be credited to the demat accounts and trading is expected to commence on August 6, 2025.

IPO Objective and Promoter Details

Since this is an Offer for Sale, NSDL will not retain any proceeds. All funds will go to the selling shareholders after expenses.

The company is professionally managed with no identifiable promoter, which is rare in Indian markets and indicates a strong governance structure.

Book Running Lead Managers and Registrar

The IPO is managed by top-tier institutions 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

• SBI Capital Markets Limited

Registrar: MUFG Intime India Private Limited

These well-known intermediaries ensure that the IPO process remains smooth, transparent, and accessible for all investors.

Disclaimer
This article is for educational and informational purposes only and does not constitute financial advice. Investment decisions should be based on individual risk tolerance and consultation with SEBI-registered advisors. Market conditions are volatile and subject to change. Neither the author nor the platform is responsible for losses arising from use of this information.

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