In what is shaping up to be one of the most anticipated initial public offerings of 2025, National Securities Depository Limited (NSDL) is set to open its IPO on July 30, and grey market premium (GMP) trends indicate heightened investor enthusiasm. As India’s largest depository by active demat accounts, NSDL’s IPO launch comes at a time when market liquidity and retail investor sentiment remain robust.
The IPO, structured as an offer for sale (OFS), is expected to unlock value for existing stakeholders while giving retail and institutional investors an opportunity to own a part of the core market infrastructure company that has played a pivotal role in the growth of India’s capital markets.
GMP Trends Suggest Strong Market Sentiment
Ahead of the issue launch, NSDL’s IPO GMP (Grey Market Premium) has surged to ₹120-₹135 per share, reflecting strong interest from high-net-worth individuals (HNIs), retail investors, and grey market traders. With the IPO price band fixed between ₹395 to ₹412 per share, the current GMP indicates a potential listing gain of nearly 30%–33% based on upper-end pricing.
Grey market activity typically signals retail enthusiasm and perceived value, even though it is unofficial and not regulated. In NSDL’s case, the increasing GMP underscores investor confidence in its established market position and healthy financial performance.
NSDL IPO: Key Issue Details
| Particulars | Details |
|---|---|
| IPO Open Date | July 30, 2025 |
| IPO Close Date | August 1, 2025 |
| Price Band | ₹395 to ₹412 per share |
| Minimum Bid Lot | 36 shares |
| Issue Size | ₹4,300 crore (approx.) |
| Type of Issue | 100% Offer for Sale (OFS) |
| Face Value | ₹2 per equity share |
| Listing Exchanges | BSE, NSE |
| Expected Listing Date | August 6, 2025 |
| Registrar | KFin Technologies |
The IPO comprises the sale of over 10.44 crore equity shares, with existing shareholders including IDBI Bank, NSE, and SUUTI expected to offload their stake partially or entirely.
NSDL: Company Overview
Founded in 1996, NSDL was the first depository to start operations in India and has since emerged as the backbone of the Indian securities market. It enables electronic settlement of securities and manages dematerialised accounts (demat accounts), custodial services, and related infrastructure.
As of March 31, 2025, NSDL services over 3.4 crore active demat accounts, holding securities valued at more than ₹370 lakh crore. It enjoys a market share of around 58% in terms of assets under custody, rivalled only by CDSL.
Shareholding Pattern Pre & Post IPO
| Shareholder | Pre-IPO Holding (%) | Post-IPO Holding (%) (est.) |
|---|---|---|
| IDBI Bank | 26.1% | Reduced (part OFS) |
| NSE | 24% | Reduced |
| Administrator of SUUTI | 16% | Reduced |
| IIFCL | 5.6% | Reduced |
| Other Institutional Investors | 28.3% | Reduced |
| Public Shareholding | 0% | Approx. 15%-18% |
Post-listing, NSDL is expected to have a more diversified ownership base, fulfilling SEBI’s norm for minimum public shareholding of 25% over a period of time.
Financial Performance Snapshot
NSDL has demonstrated consistent financial growth, with strong margins and healthy returns on equity. It derives revenues primarily from depository participant fees, annual issuer charges, settlement charges, and other financial services.
| Financial Metric (₹ crore) | FY23 | FY24 (Estimated) | CAGR (2 Years) |
|---|---|---|---|
| Total Revenue | ₹780 | ₹865 | 5.3% |
| Net Profit | ₹234 | ₹258 | 5.0% |
| EBITDA Margin | 60.1% | 61.3% | – |
| Return on Equity (RoE) | 18.4% | 18.9% | – |
| Assets Under Custody (AUC) | ₹340 lakh crore | ₹370 lakh crore | 4.3% |
NSDL’s high-margin, capital-efficient business model is often compared with exchange infrastructure companies and asset-light tech platforms.
Industry Landscape & Growth Prospects
India’s financial market infrastructure has witnessed exponential growth, and NSDL, as a core pillar, is poised to benefit from increasing formalisation, higher retail participation in equities, and digital growth.
| Sectoral Trend | Impact on NSDL |
|---|---|
| Rise in retail equity investment | Higher demat openings and transactions |
| Digital India push | Increased paperless account growth |
| Expansion of corporate bond markets | More issuers and ISINs to service |
| GIFT City & international expansion | Opportunity to service global listings |
While NSDL has a relatively high base, the continuing development of new financial instruments and deepening of capital markets presents it with sustainable growth levers.
Peer Comparison
| Company | FY24 Net Profit (₹ Cr) | RoE (%) | Valuation (Est. P/E) |
|---|---|---|---|
| NSDL | 258 | 18.9 | ~34x |
| CDSL | 424 | 21.3 | ~38x |
| CAMS | 364 | 28.1 | ~42x |
Although CDSL is often its direct peer, NSDL’s higher institutional reach and operational scale differentiate it in terms of issuer relationships and total asset value under custody.
Investor Outlook & Risks
With robust fundamentals and increasing demand for depository services, NSDL’s IPO is attracting widespread attention. However, investors should also consider the potential risks, such as:
- Regulatory Risks: Any change in SEBI regulations could impact business models.
- Technology & Cybersecurity: Being a critical financial infrastructure, any breach or downtime could have systemic consequences.
- Competition from CDSL: While NSDL has a strong foothold, CDSL is growing rapidly in the retail segment.
Still, the company’s resilient business, long operating history, and profit track record make it a valuable addition to long-term investment portfolios.
Who Should Subscribe?
- Retail Investors looking for a solid dividend-paying company with long-term capital appreciation potential.
- Institutional Investors interested in infrastructure-heavy but low capex businesses.
- Long-term Investors seeking exposure to India’s rising equity culture and market participation growth.
Conclusion
With a strong brand legacy, monopoly-like operations, and consistent profitability, NSDL’s IPO is likely to witness robust oversubscription. The rising GMP, combined with favourable pricing and long-term growth potential, positions the issue as a high-quality offering in India’s IPO landscape for FY26. For retail investors and institutions alike, this is a marquee listing to watch.
Disclaimer
This article is intended for informational purposes only and should not be construed as financial or investment advice. Readers are advised to consult financial advisors and carefully review the red herring prospectus and other disclosures before making any investment decision.
