India’s financial market is buzzing as another prominent company, National Securities Depository Limited (NSDL) enters the IPO arena. National Securities Depository Limited (NSDL) is going public. NSDL is India’s first and one of the most significant depositories, playing a critical role in managing our securities. So, when a company like this decides to go public, it naturally creates excitement.
But here’s the BIG question – should you invest in the NSDL IPO?
Let’s deep dive into the company, its financials, sector analysis, the objects of the IPO and explore whether the company deserves a spot in your portfolio.
NSDL IPO Details
| IPO Name | NSDL |
| IPO Open & Close Date | July 30, 2025 to August 1, 2025 |
| Issue Price Band | ₹760 to ₹800 per share |
| Lot Size | 18 Shares |
| Issue Size | ₹4,011.60 crores |
| Allotment Date | Aug 4, 2025 |
| Listing Date | Aug 6, 2025 |
| Retail (Min) Lot Size & Amount | 1 lot & ₹14,400 |
| Retail (Max) Lot Size & Amount | 13 lots & ₹1,87,200 |
| Small HNI (Min) Lot Size & Amount | 14 lots & ₹2,01,600 |
| Small HNI (Max) Lot Size & Amount | 69 lots & ₹9,93,600 |
| Big HNI (Min) Lot Size & Amount | 70 lots & ₹10,08,000 |
About NSDL
Most investors know NSDL as a major depository, where demat accounts are held. But there is a lot more to this company. Founded in 1996, and later incorporated as NSDL Depository Ltd. in 2012. NSDL was India’s first electronic securities depository. As of March 31, 2023, NSDL is the largest depository in India, in terms of the number of issuers and market value as per settlement value and the value of assets held under custody.
Over the years, NSDL has built a robust ecosystem of depository participants, registrars and transfer agents, stock exchanges, and clearing corporations.
In addition to the depository services, NSDL offers various other services through its Subsidiaries.
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NSDL Database Management Ltd. (NDML)
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NSDL Payments Bank Ltd. (NPBL)
What’s the NSDL IPO All About?
The NSDL’s IPO is entirely an Offer for Sale (OFS), where the existing shareholders are selling a portion of the stake. It means the company won’t receive any funds from the IPO.
IPO Details
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Type: 100% Offer for Sale (OFS)
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Total Shares on Offer: 57,260,001 equity shares
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Face Value: ₹2 per share
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Listing Exchange: BSE
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Use of Proceeds: The company will not receive any proceeds. All funds will go to selling shareholders.
Who is Selling Their Stake?
NSDL has several prestigious institutional shareholders, and this IPO allows them to partially exit.
| Selling Shareholder | No. of Shares Offered |
|---|---|
| IDBI Bank Limited | 22,220,000 |
| National Stock Exchange of India Ltd. (NSE) | 18,000,001 |
| Union Bank of India | 5,625,000 |
| State Bank of India (SBI) | 4,000,000 |
| HDFC Bank Ltd. | 4,000,000 |
| Administrator of the Specified Undertaking of UTI | 3,415,000 |
The above-mentioned shareholders are prominent financial institutions, which means their partial exit might be part of portfolio rebalancing rather than a signal of concern.
Sector Analysis
Here are the Key highlights of the depository market in India
- India has only two depositories – it’s a duopoly; only NSDL and CDSL operate in this space.
- High entry barriers – it’s tough for new companies to enter this business as the existing depositories are backed by big institutions.
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As of March 31, 2023, NSDL is the largest depository in India based on:
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Number of listed companies (issuers)
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Number of active securities (instruments)
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Share of the total value of settled trades
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Total value of securities held (assets under custody)
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The depository market has grown rapidly in recent years:
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Client accounts (like Demat accounts) grew at 29% CAGR from FY 2018 to FY 2023.
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Expected to grow at 12% CAGR from FY 2023 to FY 2027.
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The income of Indian depositories:
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Around ₹10.3 billion in FY 2023.
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Grew at ~20% CAGR between FY 2018 to FY 2023.
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Expected to reach ₹15 to ₹15.5 billion by FY 2027, growing at 10%–11% CAGR, assuming there are no major regulatory changes that may affect pricing.
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Financial Performance
NSDL’s financials look impressive, a consistent growth story with zero debt.
Key Financial Highlights (₹ in Crores)
| Financial Year Ended | Revenue | Profit After Tax | Net Worth | Total Assets |
|---|---|---|---|---|
| FY 2020-21 | 526.12 | 188.57 | 1,019.30 | 1,504.01 |
| FY 2021-22 | 821.29 | 212.59 | 1,211.62 | 1,692.75 |
| FY 2022-23 | 1,099.81 | 234.81 | 1,428.86 | 2,093.48 |
Highlights:
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Zero borrowings – completely debt-free.
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Healthy profit margins.
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Revenue more than doubled in three years.
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Strong net worth and reserves.
Business Strengths
Here’s what makes NSDL a fundamentally strong company:
Market Leader
As of March 31, 2023, NSDL has over 3.3 crore active Demat accounts and holds securities worth ₹300+ lakh crore in value. It competes with CDSL, but NSDL generally caters to institutional clients and brokers.
Sticky Business Model
Once clients (brokers, DPs) are onboarded, they rarely switch. This helps NSDL enjoy long-term, recurring revenue through transaction and custody fees.
Regulated and Trusted
Being a SEBI-registered market infrastructure institution (“MII”), NSDL enjoys immense trust.
Multiple Revenue Streams
Apart from the core depository service, NSDL earns from KYC registration (via NDML), e-sign/e-voting, PAN services, and NSDL Payments Bank.
Risks to Keep in Mind
Although the fundamentals of the company look strong, here are the risks you shouldn’t ignore.
Entire IPO is OFS: The entire issue is an OFS; the company does not get the IPO funds.
Regulatory Dependency: NSDL’s operations are tightly regulated by SEBI. Any changes in guidelines can impact the business.
Competition with CDSL: Though both co-exist, any market shift towards CDSL can impact pricing.
Newer Tech Disruption: NSDL must keep on innovating to stay ahead of other fintech players entering their space.
Should You Apply for the NSDL IPO?
Now, let us answer the big question: Should you apply for the NSDL IPO?
Reasons to Apply?
- Strong, debt-free balance sheet
- Plays a critical infrastructure role in India’s capital market
- Trusted and regulated entity
- Established revenue and profit growth
- Expanding user balance
- Dominance in the depository space
Final Thoughts – Subscribe or Avoid?
If you are a long-term investor, then the NSDL IPO surely fits the bill. It’s not a flashy IPO, but it’s solid, reliable, and profitable. The risk is comparatively low for this IPO as compared to many other IPOs, and the company’s financials speak for themselves.
However, if you are looking for quick listing day gains like those tech start-ups, then you will have to mellow down your expectations. The company is more of a “steady compounder” than a multibagger from Day 1.