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NSDL is a depository institution. This company, formed in 1996, is today the largest depository in the country.
India’s largest depository NSDL has fixed a price band of Rs 760 to 800 per share for its IPO. Its shares in unlisted market are currently trading at Rs 1,025.
NSDL’s IPO will open on 30 July 2025 and will close on 1 August 2025. The IPO bidding for anchor investors will begin a day before i.e. on 29 July.
- Minimum lot: 18 shares, for which Rs 14,400 (Rs 800 x 18) is required.
- Retail Investors: At most 13 lots (234 shares) can be applied.
- For employees: 85,000 shares reserve, which will get a discount of Rs 76 per share.
Current shareholders will sell 5.01 crore shares
This IPO is completely offer for sale (offs), that is, the company is not issuing new shares in it. The current shareholders will sell their 5.01 crore shares, which will raise around Rs 4,011 crore.
Who is selling shares?
Many big names are selling their shares in this IPO. These include:
- IDBI Bank: 2.22 crore shares will be sold.
- National Stock Exchange: 1.80 crore shares will be sold.
- Union Bank of India: Will sell 5 lakh shares.
- Apart from this, State Bank of India (SBI), HDFC Bank and SUUTI (Specified Undertaking of Unit Trust of India) are also selling their shares.
Share price 22% less than unlisted market
NSDL has priced its stock at Rs 760-800, which is 22% less than the price of Rs 1,025 in the unlisted market. In the unlisted market, its shares were earlier at a peak of Rs 1,275, but now a decline of 20% is at Rs 1,025. Nevertheless, the price of IPO is cheaper than the gray market.
This has also been seen before. Companies like Tata Technology, HDB Financial Services, UTI Asset Management and PB Fintech also priced their IPO to less than the gray market. The advantage of this is that during the listing, there can be a good jump in the share price.
How is the company’s financial health?
NSDL’s financial performance is quite strong. Company in financial year 2024-25 (FY25):
- Net Profit: Rs 343.12 crore, which is 24.57% more than 275.45 crores in the previous year.
- Revenue: Rs 1,535.19 crore, which is 12.41% more than 1,365.71 crore of FY24.
- Market Cap: The market cap will be around Rs 16,000 crore at an upper price of Rs 800.
The company’s price-to-aranings (P/e) ratio is 46.62, which is less than 66.63 P/E of its competition Central Depository Services Limited (CDSL). That is, the valuation of NSDL is cheaper than the CDSL.
Should I invest in IPO?
NSDL’s IPO can be a good chance for investors who want to invest for a long time. The company’s business model is strong, as it is an important part of India’s growing stock market. Also, its valuation is cheaper than CDSL and a good premium is visible in the gray market. However, before investing, take advice from your financial advisor and keep an eye on the market status.
Keep in mind 2 things before investing…
- Market instability: Currently there is ups and downs in the primary market, which can affect the listing.
- Gray Market Risk: Do not rely fully on GMP, as it is unofficial.
How to apply?
You can apply in NSDL IPO through online UPI or ASBA. For this, use platforms like Zerodha, Upstox, HDFC Bank or SBI Bank. The allotment of the IPO will be finalized on 4 August 2025 and the shares will be listed on BSE and NSE on 6 August 2025.
What is NSDL and its work?
NSDL is a depository institution. That is, it works to keep shares, bonds and other securities in digital form in your demat account.
In easy language, just as your money is safe in the bank, NSDL keeps your shares safe in a demat account. This company, formed in 1996, is today the largest depository in the country.
