The National Securities Depository Limited (NSDL), one of the largest depositories in the world, has launched its Initial Public Offering (IPO) with a Book Built Offer for Sale (OFS) amounting to ₹4,011.60 crores. This IPO, which opened for subscription on July 30, 2025, and will close on August 01, 2025, marks a significant milestone in the Indian financial ecosystem.

The entire IPO is an Offer for Sale (OFS) of 5.01 crore equity shares, and the company will not receive any proceeds from the offer. Instead, the funds will be distributed among the selling shareholders. The issue price band has been fixed between ₹760 to ₹800 per share, with a market capitalization of ₹16,000 crores at the upper band.

The IPO will be listed on both BSE and NSE, with a tentative listing date of August 06, 2025. The lot size is 18 shares, meaning retail investors can apply with a minimum investment of ₹14,400. For HNIs, the minimum application size is 14 lots (252 shares), amounting to ₹2,01,600.

NSDL: Background and Importance

Established in August 1996, NSDL was a pioneering move toward digitalisation in India’s capital markets, following the enactment of the Depositories Act in the same year. Prior to this, paper-based trade settlements often led to delays, bad deliveries, and high transaction costs. With state-of-the-art infrastructure, NSDL today handles the bulk of dematerialised securities in India, playing a vital role in the nation’s capital market efficiency.

Importantly, NSDL is a professionally managed company and does not have any identifiable promoter, further instilling investor confidence about transparent governance practices.

NSDL IPO Financials and Performance

The company has posted steady financial growth over the past three fiscal years:

The company’s pre-issue EPS stands at ₹17.16, and post-issue EPS also remains ₹17.16, as there is no fresh issue. The P/E ratio works out to 46.62x, which is considered fair, especially when compared to the industry average P/E of 68x.

Key Return Metrics for FY24:

• ROCE: 22.70%

• ROE: 18.60%

• RoNW: 17.11%

Grey Market Premium (GMP) and Listing Gains

As of July 27, 2025, the Grey Market Premium (GMP) for NSDL stands at ₹144, suggesting a potential listing price of ₹944, which is 17.98% higher than the upper price band. It must be noted that GMP is unofficial, unregulated, and driven entirely by market demand and supply, and should not be used solely for investment decisions.

Anchor Investor Participation

NSDL has raised ₹1,201.43 crores from anchor investors, allocating 1,50,17,999 equity shares at ₹800 per share. The allocation was done in consultation with Book Running Lead Managers (BRLMs), including:

• ICICI Securities

• Axis Capital

• HSBC Securities

• IDBI Capital

• Motilal Oswal Investment Advisors

• SBI Capital Markets

The Registrar of the issue is MUFG Intime India Pvt Ltd.

Live Subscription Status – As of July 31, 2025, 11:30 AM

On Day 2 of the IPO:

• Overall Subscription: 1.12x

• This indicates that investor demand is healthy and the IPO is on its way to being fully subscribed by the end of Day 3.

Important IPO Dates

How to Check NSDL IPO Allotment Status

To check allotment:

1. Go to the registrar’s website (MUFG Intime).

2. Select National Securities Depository Limited IPO from the dropdown.

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

4. Click submit to view your allotment status.

Objective of the Offer

Since this IPO is entirely an Offer for Sale, NSDL will not receive any proceeds. The entire sum (net of expenses) will go to the selling shareholders, who are exiting or reducing their stake in the company.

NSDL IPO Review: Should You Apply?

Given its position as a core infrastructure player in India’s capital market, strong financials, high return ratios, and reasonable valuation, the NSDL IPO appears to be a good opportunity for listing gains. However, since this is a pure OFS, there is no capital infusion for business expansion, and hence long-term investors must weigh this aspect.

The current GMP suggests moderate to strong listing gains, making this IPO more suitable for risk-tolerant investors who seek to benefit from short-term listing performance.

Disclaimer:
This IPO analysis is for educational and informational purposes only and should not be considered investment advice. Investors must do their own due diligence and consult certified financial advisors before making any investment decision. All figures are based on publicly available sources as of the publication date and are subject to change.

The Upcoming IPOs in this week and coming weeks are BLT Logistics, Bhadora Industries, Highway Infrastructure, Flysbs Aviation, Parth Electricals & Engineering, Jyoti Global Plast, Essex Marine, Aaradhya Disposal Industries.

The Current active IPO are Cash Ur Drive Marketing, Renol Polychem, B.D. Industries (Pune), NSDL, Takyon Networks, Mehul Colours, M&B Engineering, Sri Lotus Developers & Realty, Aditya Infotech, Lakshmi India Finance, Kaytex Fabrics.

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