The IPO of National Securities Depository Limited (NSDL) will be open for investors from July 30th to August 1st. This is entirely an Offer For Sale (OFS), in which 5.01 crore shares will be sold in the price band of ₹760 to ₹800 per share. The company is not raising any fresh capital from this issue. Let's explore 10 key points related to this IPO as outlined in the RHP (Red Herring Prospectus).
1. IPO Launch and Price Band
NSDL's Initial Public Offering (IPO) will open on Wednesday, July 30, 2025, and close on Friday, August 1, 2025.
- A total of 5,01,45,001 shares are offered for sale in this issue.
- The price band for the shares has been fixed at ₹760 to ₹800 per share.
- Since this issue is entirely an OFS (Offer For Sale), the entire amount received will go to the existing shareholders, not the company.
2. Who is Selling Shares?
The shareholders who are selling shares in this IPO are:
- IDBI Bank: 2.22 crore shares
- NSE (National Stock Exchange): 1.80 crore shares
- SBI: 40 lakh shares
- HDFC Bank: 20.10 lakh shares
- SUUTI (Specified Undertaking of UTI): 34.15 lakh shares
- Union Bank of India: 5 lakh shares
These institutions will sell shares from their respective holdings in the market.
3. Who are the Key Managers of this Issue?
The book-running lead managers handling this public issue of NSDL include these companies:
- ICICI Securities
- Axis Capital
- HSBC Securities & Capital Markets
- IDBI Capital Markets
- Motilal Oswal Investment Advisors
- SBI Capital Markets
MUFG Intime India is the registrar for this issue.
4. Company Ownership and Promoter Status
NSDL is a professionally managed company and does not have a clearly defined promoter.
- IDBI Bank holds 26.10% stake in the company.
- NSE holds 24% stake.
- No other shareholder holds 15% or more of the voting rights in the company.
As per SEBI guidelines, no single investor will hold more than 15% stake even after the IPO.
5. Company Leadership and Board
NSDL's board has a total of seven members:
- One Managing Director
- Four Public Interest Directors
- Two Non-Independent Directors
Vijay Chandok is currently the Managing Director and CEO of the company. He has been associated with the company since November 2024. Prior to this, he held senior positions at ICICI Bank and ICICI Securities.
6. Direct Competition
NSDL's main and only competitor is CDSL (Central Depository Services Limited).
Both CDSL and NSDL provide services such as demat accounts, securities holding, and transfer services.
7. What is NSDL's Business Model?
NSDL is a SEBI-registered Market Infrastructure Institution (MII). It provides various services to the Indian financial market.
- As of March 31, 2025, NSDL is the largest depository—in terms of the number of issuers, active instruments, settlement volume, and assets under custody.
- The company's depository network is also quite b—it has 65,391 service centers, while CDSL has only 18,918.
8. How has the Financial Performance Been?
NSDL's revenue and profit have consistently increased:
- FY23: ₹10,219.88 million
- FY24: ₹12,682.44 million
- FY25: ₹14,201.46 million
Similarly, PAT (Profit After Tax) also:
- ₹2,348.10 million in FY23
- ₹2,754.45 million in FY24
- ₹3,431.24 million in FY25
This indicates that the company's growth is consistently in a positive direction.
9. Potential Business-Related Risks
In the RHP, NSDL has pointed out some key risks:
- If investors' interest shifts away from the stock market to other options, the demand for NSDL's services may decline.
- If the company fails to expand its products or service range, it will affect the business.
10. Technology-Related Threats
The company's entire operation depends on IT systems.
- If there is a technical glitch or cyber attack for any reason, it will not only affect the company's reputation but also may lead to financial penalties from SEBI.
- The company has taken strict measures regarding security, but potential risks cannot be ruled out.
Listing and Allotment Dates
- Share Allotment: Monday, August 4, 2025
- Listing Date: Wednesday, August 6, 2025 (on BSE)
