The National Securities Depository Limited (NSDL), India’s leading depository and market infrastructure institution, is preparing for its much-awaited IPO, which is expected to take place in July 2025. As the pioneer in dematerialising securities in India, NSDL holds a crucial position in the Indian financial landscape. The upcoming Offer for Sale (OFS) will give investors the opportunity to own a piece of India’s largest depository.
About NSDL
Founded in 1996, NSDL revolutionised the Indian securities market by pioneering dematerialisation, which allowed securities to be held in electronic form, making the entire process more efficient, secure, and cost-effective. Today, NSDL is the largest depository in India, handling a majority of the market share in terms of assets under custody, active instruments, and settlement volume.
NSDL operates with the primary objective of enhancing the efficiency, safety, and cost-effectiveness of securities transactions in India. In addition to core services such as maintaining records of ownership and facilitating asset servicing, NSDL offers additional services like e-voting, consolidated account statements (CAS), and non-disposal undertakings (NDU).
NSDL has two subsidiaries:
- NSDL Database Management Limited (NDML): Provides services for automation and e-governance projects.
- NSDL Payments Bank Limited (NPBL): Focuses on financial inclusion through its payments bank services.
NSDL IPO: Key Details
The NSDL IPO is a 100% Offer for Sale (OFS), meaning no fresh issue of shares is planned. The shares offered in this IPO will be sold by existing shareholders, with all proceeds going to them. The issue size is expected to be ₹3,000 crore, with a total of 57,260,001 equity shares being offered for sale.
NSDL IPO Key Dates and Information
| Particulars | Details |
| IPO Open Date | Last week of July 2025 (Expected) |
| IPO Close Date | Last week of July 2025 (Expected) |
| Price Band | ₹752 per share (Expected) |
| Face Value | ₹2 per share |
| Total Issue Size | ₹3,000 crore |
| Offer for Sale | 57,260,001 shares |
| Listing | BSE, NSE |
| Lot Size | 19 shares |
| Minimum Investment (Retail) | ₹14,850 |
| Promoter Holdings | IDBI Bank, NSE |
NSDL Financial Overview
NSDL has experienced consistent growth in its financial performance over the years. The company’s revenue is primarily driven by annual custody fees, maintenance fees, and transaction charges. Below is a snapshot of NSDL’s financial performance for the past few years:
| Particulars | Mar 2023 (₹ Cr) | Mar 2024 (₹ Cr) |
| Net Sales | ₹409.17 | ₹473.06 |
| Total Expenditure | ₹203.40 | ₹231.49 |
| Operating Profit | ₹205.77 | ₹241.57 |
| Profit Before Tax (PBT) | ₹271.68 | ₹327.52 |
| Profit After Tax (PAT) | ₹210.82 | ₹258.08 |
| EBITDA | ₹299.30 | ₹328.25 |
| EPS (₹) | ₹1.05 | ₹1.29 |
As per the table above, NSDL has witnessed a steady rise in its revenue and profitability over the years, with a significant increase in PAT and EPS.
Growth Prospects and Market Outlook
The Indian depository market has been growing rapidly in recent years, with a 29% CAGR in client accounts between FY18 and FY23. The market is expected to grow at a 12% CAGR from FY23 to FY27. This growth is driven by the increasing number of retail investors and the growing penetration of digital financial services in India.
NSDL’s revenue model is based on recurring income, making it less sensitive to market cycles. It charges custody and transaction fees to issuers, depository participants, and investors, ensuring a steady stream of income. The company is also well-positioned to capitalise on the growth in mutual funds, REITs, AIFs, and other asset classes, which are increasingly being held in demat form.
NSDL Competitive Strengths
- Market Leadership: NSDL holds the top position in the Indian depository market in terms of the number of issuers, active instruments, settlement volume, and market share.
- Revenue Stability: With a significant proportion of recurring revenue from custody and maintenance fees, NSDL’s business model is resilient and less dependent on market fluctuations.
- Technology-driven: NSDL has consistently invested in technology to improve its services, enhance operational efficiency, and minimise risks.
- Diverse Asset Classes: NSDL holds a diverse range of asset classes in its demat accounts, including equities, debt instruments, mutual funds, gold receipts, and government securities.
Risk Factors
- Investor Preferences: A shift in investor preferences away from securities could impact NSDL’s business and demand for its services.
- Market Cycles: The company’s revenue from transaction-based fees is dependent on the health of the securities market, making it vulnerable to market cycles.
- Competition: As the market grows, competition from other depositories and financial institutions could increase.
NSDL IPO Subscription and Allotment
The IPO is expected to have reserved categories for Qualified Institutional Buyers (QIBs), Non-Institutional Investors (NIIs), and Retail Investors, with the following structure:
- QIBs: 50% of the net offer
- NIIs: 15% of the net offer
- Retail Investors: 35% of the net offer
The allotment status and final listing date are expected to be confirmed closer to the IPO dates, which are expected in late July and early August 2025, respectively.
Conclusion
The NSDL IPO offers an exciting opportunity for investors looking to gain exposure to India’s largest depository and a key player in the country’s growing financial and securities market. With its strong market position, steady revenue growth, and leadership in dematerialisation, NSDL is well-positioned to benefit from the growing participation in India’s capital markets.
Investors should keep an eye on the official announcements and key dates for the IPO, which will be crucial in determining the timing and pricing of this significant offering. As always, potential investors should carefully assess the risks, including competition and market cycles, before making their investment decisions.
Source:
https://zerodha.com/ipo/355868/national-securities-depository-limited-nsdl/
