NSDL IPO Opens July 30: India’s First Depository to List Shares
- 30th July 2025
- 11:30:00 AM
- 5 min read
Mumbai | July 30 – The National Securities Depository Ltd (NSDL), India’s first and one of the largest depositories by asset value, is set to open its ₹4,011.60 crore initial public offering (IPO) on July 30. The public issue marks a key milestone for India’s capital markets, bringing to the exchanges a core infrastructure institution that facilitates dematerialisation, settlement, and secure ownership of securities. The IPO is entirely an offer for sale (OFS) by existing shareholders. There is no fresh issue component, and NSDL will not receive any proceeds. The offer closes on August 1, with listing scheduled for August 6 on both the NSE and BSE.
NSDL was established in 1996 and played a pioneering role in digitising India’s securities markets. As of March 2025, the company manages over ₹464 lakh crore in assets under custody (AUC) and serves more than 39.5 million demat accounts. Its nationwide infrastructure includes 294 depository participants (DPs) and over 65,000 service centres.
The IPO will see divestments by shareholders such as IDBI Bank, NSE, Union Bank of India, Canara Bank, HDFC Bank, State Bank of India, and IOB. The price band has been fixed at ₹760–₹800 per equity share, with investors able to bid in lots of 18 shares and in multiples thereafter.
Ahead of the offer, NSDL raised ₹1,201.4 crore from a broad anchor investor base including LIC, SBI Mutual Fund, HDFC Life Insurance, Nippon India Mutual Fund, Abu Dhabi Investment Authority, Ashoka WhiteOak, and ICICI Prudential MF. The strong anchor book signals investor appetite for India’s capital market infrastructure sector.
According to the red herring prospectus (RHP), NSDL posted revenue from operations of ₹1,420.1 crore in FY25, up from ₹1,268.2 crore in FY24. Net profit rose 24.6% year-on-year to ₹343.1 crore. The company maintained an operating margin of 24%, while return on net worth (RoNW) stood at 18.6%. Approximately 44% of revenue in FY25 came from depository services, 51% from banking services via NSDL Payments Bank, and the remainder from technology-enabled offerings such as e-voting and e-Sign.
The RHP also notes that over the last three fiscal years, NSDL has consistently generated positive free cash flows, with relatively low capital expenditure requirements. The platform benefits from high annuity-like income, minimal credit risk, and scalable tech infrastructure.
At the upper end of the price band, the company’s post-issue market capitalisation is expected to be around ₹16,700 crore, which translates to a price-to-earnings (P/E) multiple of 46.6x FY25 earnings. While NSDL does not have a listed peer, investors are aware that India has two SEBI-registered depositories. The other is Central Depository Services (India) Ltd (CDSL), which also operates in the demat and settlement space. SEBI regulations prohibit IPO communications from making direct peer comparisons.
IPO Snapshot
- IPO Size: ₹4,011.60 crore (100% OFS)
- Price Band: ₹760–₹800 per share
- Offer Opens: July 30, 2025
- Offer Closes: August 1, 2025
- Lot Size: 18 shares per application
- Listing: August 6 on NSE and BSE
- Anchor Investment: ₹1,201.4 crore raised on July 29
- Bookrunners: ICICI Securities, SBI Capital Markets, Axis Capital, IDBI Capital, HSBC Securities, Motilal Oswal
- Registrar: KFin Technologies
- Allotment Date: Expected on August 4, 2025
Demat Industry Outlook and NSDL’s Position
The Indian depository system has evolved rapidly over the last decade. As cited in the CRISIL report commissioned for the DRHP, the total number of demat accounts in India grew at a CAGR of 21.9% between FY13 and FY23, reaching 11.45 crore across both depositories. The total value of securities held in demat form surged from ₹146 trillion in FY17 to ₹480 trillion by FY23.
As of FY25, NSDL’s average custody value per account stands at ₹11.77 million, a reflection of its strength in servicing institutional and high-value individual investors. The company also plays a key role in managing government securities, corporate bonds, mutual fund units, and alternative investment instruments. In addition, NSDL acts as a Central Recordkeeping Agency (CRA) for the National Pension System.
The RHP notes: “The company believes its ability to develop and launch new services such as e-Sign, e-Voting, and Tokenisation platforms will support future growth. NSDL remains committed to digital innovation, compliance, and investor education.”
India’s increasing market cap-to-GDP ratio—from 79% in FY19 to 101.2% in FY23—alongside a surge in IPOs and SIPs, continues to benefit the depository business. As investor formalisation deepens, platforms like NSDL are positioned to grow via recurring transaction and maintenance revenues.
NSDL’s IPO brings a foundational market infrastructure institution into the public domain, offering investors access to a 27-year-old regulated platform with scale, trust, and financial strength. While there is no fresh capital raised, the issue allows for shareholder exits and unlocks value for one of India’s key financial plumbing layers. With stable earnings, a diversified revenue base, and a high-quality board, NSDL’s listing adds depth to the listed financial services space.
PL Capital does not offer a rating on the issue. Investors are advised to read the full RHP and assess their investment strategy in consultation with a registered advisor.
PL Capital
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.
