NSDL Ltd IPO (NSDL IPO) is all set to open for subscription on July 30. The depository has also announced the price band for the public issue. Here’s a look at some key things to know about the NSDL IPO before it opens for subscription:
NSDL IPO Offer Size, Listing Date, Price Band
NSDL IPO’s offer size is Rs 4,011.6 crore. The public issue consists only of an offer for sale component of 5.01 crore shares. NSDL IPO is the third-largest public issue so far in 2025. So far, HDB Financial Services IPO and Hexaware Technologies IPO have been the biggest public issues with offer sizes of Rs 12,500 and Rs 8,759.41, respectively.
THE NSDL IPO price band has been fixed at Rs 760 to Rs 800 per share. The minimum lot size to apply for the NSDL IPO for retail investors has been set at 1 lot consisting of 14 shares, aggregating to a minimum investment of Rs 13,680.
The minimum lot size for Small Non-Institutional Investors (SNII) is 14 lots or 252 shares, which amounts to an investment of Rs 2,01,600.
As much as 50 per cent of the offer size of the NSDL IPO has been reserved for Qualified Institutional Buyers. Up to 35 per cent of the offer size has been set aside for the retail category, and 15 per cent has been reserved for Non-Institutional Investors (NII).
NSDL IPO share allotment status is likely to be finalised on August 4. Subsequent to the allotment of shares, refunds will be initiated for unsuccessful bidders on August 5, and successful bidders will receive shares of NSDL in their demat accounts on the same day. Shares of NSDL will tentatively list on the BSE. THE NSDL IPO listing date is August 6.
NSDL: Key Financials
In the fiscal year ending March 31, 2025, NSDL’s revenue from operations stood at Rs 1,535.19 crore, rising by over 12 per cent compared to Rs 1365.71 crore in the preceding fiscal. The profit-after-tax of the depository for the fiscal year under review grew by over 24 per cent to Rs 343.12 crore compared to Rs 275.45 crore in the preceding fiscal. NSDL net worth also increased by more than 19 per cent to Rs 2005.34 crore in the fiscal ended March 31, 2025, compared to Rs 1684.1 crore in the financial year ended March 31, 2024.
NSDL Peers
According to NSDL’s Red Herring Prospectus (RHP), the company has only one competitor in India, Central Depository Services Ltd (CDSL). The company added in the RHP that India’s depository market has a duopoly with high barriers to entry since the two existing depositories are promoted by large institutions.
NSDL: Business Model
NSDL operates as a Sebi-registered market infrastructure institution (MII). The depository offers a diverse range of products and services. Notably, NSDL also led the drive for dematerialisation of securities in India in the year 1996. NSDL’s core business is providing a centralised digital booking-keeping system for enabling the holding and transferring of securities in electronic form. The company also undertakes record-keeping of the ownership of securities held in dematerialised form.
NSDL mentioned in the RHP that its depository services business provides it with a steady stream of recurring revenue in the form of annual custody fees, which are charged to issuers of securities. The depository also earns revenue in the form of annual maintenance fees that it charges depository participants. The depository also charges transaction fees from depository participants and issuers of securities. The company also provides several value-added services through its subsidiaries, such as NSDL Database Management Ltd (NDML) and NSDL Payments Bank Ltd.
NSDL IPO: Risks And Strengths
Here’s a look at some of the key risks related to NSDL’s business according to the company’s RHP:
NSDL disclosed in its Red Herring Prospectus (RHP) that changes in investor preferences moving away from investing and trading in securities to other assets can adversely affect the depository’s business.
NSDL also mentioned in the prospectus that its potential failure to increase its service offerings and market reach can also have an adverse impact on its business.
The depository services provider said that since a large proportion of its business is transaction-based, external factors beyond the company’s control may affect trading volumes, which can then adversely impact the business.
Here’s a look at some of the key strengths of NSDL according to the company’s RHP:
NSDL is India’s first depository; the company helps market participants through a wide range of technology-led businesses.
NSDL also mentioned in the RHP that it is India’s largest depository in terms of the number of issuers, the number of active instruments, the market share in demat value of settlement volume, and value of assets held with it as of March 31, 2025
NSDL also highlighted that it has a strong focus on technology-led product innovation and has consistently invested in technology.
NSDL claims that it has an experienced senior management team consisting of qualified and experienced professionals with an average experience of over two decades.
The depository also disclosed in the RHP that it holds diversified asset classes in demat accounts and has well-diversified business verticals. The company holds diversified asset classes in demat accounts such as equities (listed and unlisted), preference shares, warrants, funds (mutual funds, REITs, InvITs, and AIFs), debt instruments, etc.
NSDL IPO: Objective
NSDL will not receive the funds raised via the public issue. The purpose of the public issue includes achieving the benefits of listing the NSDL shares on the BSE.
