The National Securities Depository Limited (NSDL) IPO has grabbed the attention of investors in 2025. As one of India’s largest securities depositories, NSDL’s public offering presents a unique opportunity to invest in a key player supporting India’s financial markets. This blog covers everything you need to know: from eligibility and IPO details to financial performance and peer comparison, helping you decide whether to apply.
Introduction to NSDL and Its IPO
NSDL, established in 1996, was India’s first electronic securities depository and remains the largest in the country. It enables secure, electronic holding and transfer of financial securities across various asset classes. NSDL plays a critical role in India’s capital markets infrastructure, serving investors, brokers, and institutions.
In 2025, NSDL launched its Initial Public Offering (IPO) through a pure Offer For Sale (OFS), where only existing shareholders sold shares, and no fresh capital was raised by the company itself. This IPO is significant because it opens NSDL’s ownership to public investors, allowing them to own a stake in a dominant financial market infrastructure firm.
NSDL IPO Details: Key Dates and Price Band
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IPO Open Date: July 30, 2025
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IPO Close Date: August 1, 2025
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Price Band: ₹760 to ₹800 per share
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Issue Size: ₹4,011.6 crore through the sale of 5.01 crore shares
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Lot Size: 18 shares per lot
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Minimum Investment: Approximately ₹13,680 (18 shares at ₹760)
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Anchor Investors: ₹1,201 crore raised on July 29, 2025, from reputable names like LIC and Capital International
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Listing Date: Expected August 6, 2025, on NSE and BSE
The IPO solely comprises an OFS by existing shareholders such as State Bank of India, HDFC Bank, and National Stock Exchange (NSE), meaning proceeds from the IPO will go to these sellers and not NSDL itself.
Who Is Eligible to Subscribe to the NSDL IPO?
The IPO subscription is open to:
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Retail Individual Investors (RIIs): Individuals investing up to ₹2 lakh in the IPO
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Non-Institutional Investors (NIIs): Individual investors investing above ₹2 lakh but not qualified institutional buyers
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Qualified Institutional Buyers (QIBs): Institutional investors such as mutual funds, foreign portfolio investors
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Employees of NSDL: Have a reserved quota to participate
Investors can bid for a minimum of 18 shares and multiples thereof. The subscription is accessible via stockbrokers and online trading platforms.
Subscription Status and Market Response
On Day 1 (July 30, 2025), the NSDL IPO was met with robust demand:
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Fully subscribed within a few hours of opening
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Subscription ratios:
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Retail Investors: 1.54x
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Non-Institutional Investors: 2.05x
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Qualified Institutional Buyers: 78% of their quota
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Employees: Fully subscribed
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This strong response reflects investor confidence in NSDL’s business and growth prospects. The grey market premium (GMP) was ₹126 above the upper price band, implying optimistic listing gains at around ₹926 per share, approximately 15.75% higher than the IPO price.
Financial Performance: Revenue, Profit, and Margins
For the fiscal year 2025 (FY25), NSDL reported:
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Revenue: ₹1,420 crore, up by 12% year-on-year
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Profit After Tax (PAT): ₹343 crore, up 25% year-on-year
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EBITDA Margin: 34.71%, indicating efficient operational management
NSDL’s financial health shows consistent growth driven by increasing investments in the capital markets and expanding demat account penetration in India.
Valuation Metrics: P/E, P/B Ratios Explained
NSDL’s valuation metrics based on FY25 earnings are:
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Price to Earnings (P/E) Ratio: Approximately 46.6x
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Price to Book (P/B) Ratio: Approximately 7.98x
These ratios suggest a premium valuation due to NSDL’s dominant market position and steady cash flows. For comparison, its peer CDSL trades at a higher P/E of around 60.4x and P/B of about 18.08x, reflecting market dynamics and differing growth prospects.
Peer Comparison: NSDL vs CDSL
| Criterion | NSDL | CDSL |
|---|---|---|
| Market Position | Largest securities depository in India | Second largest, focused on retail segment |
| IPO Type | Pure Offer For Sale (OFS) | Already listed |
| FY25 Revenue | ₹1,420 crore | Slightly lower |
| P/E Ratio | ~46.6x | ~60.4x |
| P/B Ratio | ~7.98x | ~18.08x |
| Subscriber Base | Dominated by institutions, unlisted companies | Retail investor focus |
| Growth Drivers | Increasing demat accounts, Indian capital markets | Growing retail participation |
While CDSL commands higher valuation multiples, NSDL’s larger scale and institutional focus provide a strong foundation for long-term steady growth.
Anchor Investors and Their Role in the IPO
Anchor investors contributed ₹1,201 crore by purchasing shares a day before the IPO opened publicly. These investors include:
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Life Insurance Corporation of India (LIC)
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Capital International
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Other institutional heavyweights
Anchor participation is a positive indicator of confidence, helping stabilize the issue price and generate investor interest.
Grey Market Premium and Listing Gains Expectations
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Grey Market Premium (GMP): ₹126 above upper price band (₹800), indicating a premium of over 15%
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Expected Listing Price: Around ₹926 per share
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This suggests attractive initial listing gains for investors subscribing at the IPO price, reflecting high market enthusiasm.
Strengths and Risks of Investing in NSDL IPO
Strengths:
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Dominant market leader with near monopoly in securities depository services
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Strong financial performance with consistent revenue and profit growth
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Robust operational margins and growing market share
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Strategic importance in India’s financial infrastructure
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Long-term growth supported by increasing retail and institutional participation
Risks:
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IPO is a pure Offer For Sale; NSDL itself receives no fresh funds
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Dependence on capital market activity which can be cyclical
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High valuation multiples may limit immediate upside
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Competition from CDSL and potential regulatory changes
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Subscription from institutional investors was moderate, indicating cautious approach
Conclusion: Should You Apply for NSDL IPO?
The NSDL IPO offers investors a rare chance to own a part of India’s foundational financial market infrastructure. With a strong business model, solid financials, and robust market demand, the IPO is well-positioned for steady growth.
The strong subscription from retail and non-institutional investors, healthy grey market premium, and reputable anchor investors add confidence to the issue.
However, given the premium valuation and the absence of fresh capital inflow to NSDL, investors should evaluate their risk appetite and long-term investment goals carefully.
If you seek a conservative, infrastructure-backed investment with steady growth potential in India’s capital markets ecosystem, subscribing to NSDL IPO could be a prudent decision.
