The Initial Public Offering (IPO) of National Securities Depository Limited (NSDL), worth ₹4011 crore, opened for subscription on July 30, 2025. The price band for the issue has been fixed at ₹760 to ₹800 per share. This IPO is entirely an Offer For Sale (OFS), meaning existing shareholders are selling their stake. The company will not receive any direct capital from this issue.
A day before the IPO opened, the company raised ₹1201 crore from anchor investors. Major names like LIC and the Abu Dhabi Investment Authority (ADIA) participated in the anchor investment, creating an atmosphere of trust in the market.
What NSDL does, and what its business model is
NSDL was established in 1996 and was India's first depository company. This means it's the institution that securely holds investors' shares and securities in electronic form. The Demat accounts that investors open are operated through these depositories. Currently, there are two main depositories in India – NSDL and CDSL.
NSDL also provides other services through its two subsidiaries. One of these is NSDL Database Management Ltd, which offers services related to SEZ Online, insurance repositories, digital KYC, and e-governance. The second subsidiary is NSDL Payments Bank, which works with digital finance products such as prepaid cards, digital banking, and merchant services.
Direct competition with CDSL, but NSDL has a b portfolio
NSDL directly competes with CDSL, which is already listed and quite popular among investors. However, NSDL's size and market share are considerably larger than CDSL's. According to data, NSDL holds 89 percent of India's total Demat value.
Although CDSL is ahead in terms of the number of Demat accounts, NSDL dominates in institutional investments and large-value transactions. Because of this, NSDL's business model offers a distinct kind of trust and stability.
The company will not receive any money from this issue; the entire issue is an Offer For Sale
NSDL's IPO is entirely an OFS, in which IDBI Bank, NSE, SBI, and other existing shareholders are selling their stake. The company is not raising any new funds from this issue, meaning this fund will not be used for the company's business expansion.
This is something for investors to note, as the purpose of an IPO is usually to raise funds and invest in growth. This is not the case here, but brokerage firms have still viewed it positively due to its stable revenue and b profitability.
What brokerage houses and analysts say about this IPO
Market experts believe that NSDL's valuation is attractive and its track record is quite b. Anand Rathi has given this IPO a 'Subscribe' rating. According to them, the company's margins are b, and it has a deep hold in the Demat market.
Angel One says that this could be a reliable opportunity for long-term investors. They believe that the company has a good combination of technology, data, and fintech services, which creates good opportunities for further growth.
A look at NSDL's financials, how was the profit and income
NSDL recorded a total income of ₹1,089 crore in FY24, which was 18 percent higher than the previous year. The company's net profit was ₹250 crore, which shows a year-on-year increase of 12 percent.
In addition, the company's operating margins are also quite b. Its revenue mainly comes from transaction fees, account maintenance, and other technology services. This is a model that ensures regular and stable income.
IPO structure, lot size and essential information for retail investors
The price band for the NSDL IPO is ₹760 to ₹800 per share. One lot contains 18 shares, meaning a retail investor will have to invest at least ₹14,400. The IPO opened on July 30 and will remain open for subscription until August 1, 2025.
The allotment of shares is likely to take place on August 2, and the tentative listing date is being reported as August 6. It will be listed on both the NSE and BSE exchanges.
Names like LIC and ADIA in Anchor Investors, Increased Market Confidence
Before the IPO, NSDL raised ₹1201 crore from anchor investors. Major institutional investors such as LIC, India's largest insurance company, and the Abu Dhabi Investment Authority participated in it.
This has sent a signal to the market that the company can be trusted, and there is a possibility of stability and strength in it in the long run.
