India’s largest depository, National Securities Depository Limited (NSDL), is set to make its debut on the Indian stock exchanges with an initial public offering (IPO) scheduled to open for subscription on July 30, 2025. This highly anticipated public issue has been in focus, especially given NSDL’s pivotal role in India’s capital markets.
Here’s a detailed breakdown of everything you need to know from the Red Herring Prospectus (RHP), including issue size, important dates, and company fundamentals.
1. IPO Opening and Closing Dates
- Opening Date: July 30, 2025
- Closing Date: August 1, 2025
- Anchor Investor Bidding: July 29, 2025
2. IPO Issue Size
The total issue size of the NSDL IPO is ₹1,743 crore, entirely through an Offer for Sale (OFS). This means existing shareholders will be offloading their stake, and no new shares will be issued.
3. Offer for Sale (OFS) Details
The OFS will include the sale of up to 5.72 crore equity shares by existing shareholders:
- IDBI Bank
- National Stock Exchange (NSE)
- Union Bank of India
- State Bank of India (SBI)
- HDFC Bank, and others.
No fresh capital will be raised by the company through this IPO.
4. Company Background
Established in 1996, NSDL is one of the two central depositories in India and was the first to offer dematerialization services. It holds over 297 million demat accounts, with a total custody value of ₹450+ lakh crore as of March 2025.
5. Strong Market Position
- NSDL holds a 57% market share in terms of demat custody value.
- Trusted by leading financial institutions, mutual funds, and retail investors.
- Major enabler of India’s capital market digitization.
6. Financial Performance (as per RHP)
- FY24 Revenue: ₹1,098 crore
- FY24 Net Profit: ₹232 crore
- 3-Year CAGR Revenue Growth: 16%
- Return on Net Worth (FY24): 21.4%
The consistent profitability and robust margins make NSDL an attractive long-term play for investors.
7. Objectives of the IPO
Since it is an OFS, the company will not receive any proceeds from the IPO. The listing will, however, enhance its visibility and provide a public market for its shares.
8. Lot Size and Price Band
The price band and lot size are expected to be announced by July 26, 2025, just ahead of the IPO opening. Retail and institutional investors are eagerly awaiting these details to make bidding decisions.
9. Book Running Lead Managers
The IPO is being managed by:
- ICICI Securities
- IIFL Securities
- Kotak Mahindra Capital
- IDBI Capital
- Nomura Financial Advisory
10. Listing and Allotment
- Basis of Allotment: Likely on August 5, 2025
- Refunds Initiated: August 6, 2025
- Shares Credited to Demat: August 7, 2025
- Listing Date: Expected on August 8, 2025 on both NSE and BSE
Conclusion: Should You Subscribe?
NSDL is a fundamentally strong and strategically critical player in India’s financial infrastructure. With no fresh equity being issued, the IPO will primarily benefit the selling shareholders. However, retail investors seeking exposure to a strong, cash-generating business with a high entry barrier may find this IPO promising from a long-term investment perspective.
Investors should assess the price band and valuations before subscribing. Given NSDL’s dominant market share, high margins, and established reputation, the IPO is expected to attract significant interest from institutional and retail segments alike.
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