Federal securities entity, NSDL, plans to float a ₹4,011 crore IPO on July 30, with the share price range set between ₹760 and ₹800.
NSDL's ₹4,000 Crore IPO Opens on July 30
National Securities Depository Ltd (NSDL), the pioneer of dematerialised securities in India, is set to conduct a ₹4,000 crore Initial Public Offering (IPO) starting on July 30, 2025, and concluding on August 1, 2025. The listing is expected around August 6, 2025 [1][3][4].
This IPO is structured as a 100% Offer for Sale (OFS), meaning existing shareholders are selling their shares, and NSDL itself will not receive any proceeds from this transaction [1][2][4]. The price band for the IPO has been fixed at Rs 760 to Rs 800 per share. At the upper end of the price band, NSDL's maiden public issue is expected to fetch Rs 4,011 crore, valuing the company at Rs 16,000 crore [4].
Key Details of the NSDL IPO
- Issue Size: Approximately ₹4,000 crore
- Shares Offered: Around 50.145 million shares sold by existing shareholders
- Lot Size: 18 shares and multiples
- Listing: On BSE and NSE
- Employee Discount: ₹76 per share [1][3][4]
Reasons Behind the Offer for Sale IPO
The IPO allows major shareholders like NSE, SBI, HDFC Bank, IDBI Bank, Union Bank, and SUUTI to monetize their holdings in NSDL [4]. NSDL is not raising new funds, signaling confidence that its current capital base supports its operations and future growth projections [1][2]. The IPO provides institutional and retail investors access to India’s largest securities depository at a valuation reflecting NSDL’s strong regulatory credibility and pivotal role in the financial ecosystem [2].
Implications for the Company and Stakeholders
- NSDL: No fresh funds received but gains from a more diversified shareholder base; enhances public visibility and market presence. Investments in tech upgrades continue to position NSDL for future growth despite IPO proceeds not augmenting capital directly.
- Existing Shareholders: Realize liquidity from sale of shares, unlocking value monetarily while preserving long-term value through cautious pricing and planned shareholding.
- Investors (Retail & Institutional): Opportunity to invest in a core infrastructure player facilitating capital market transactions with relatively stable, recurring revenues and minimal cyclical risks. Possible conservative short-term pricing but long-term growth potential in unlisted securities and digital banking.
- Market: Increased transparency and public listing may improve governance standards. Competitive positioning vis-à-vis CDSL is to be watched due to NSDL’s operational efficiencies and technology upgrades [2].
Additional Context
The IPO was delayed but is now positioned as a key market event providing access to a critical financial infrastructure entity [2]. NSDL has faced some technical challenges this year but mitigated impact by paying financial penalties, showing regulatory compliance and commitment to service quality [2]. The pricing range suggests conservatism, aiming to ensure successful subscription and sustained investor confidence rather than speculative short-term gains [2].
This upcoming listing will make NSDL the country's second publicly traded depository after Central Depository Services (CDSL), which was listed on the NSE in 2017. For the full financial year 2024-25, NSDL's net profit surged by 24.57% to Rs 343 crore, and total income rose to Rs 1,535 crore [4].
Half of the issue size of NSDL's IPO has been reserved for qualified institutional buyers. 35% of the issue size is reserved for retail investors, and the remaining 15% is for non-institutional investors [4]. The IPO only consists of an Offer For Sale (OFS) component of 5.01 crore shares.
ICICI Securities, Axis Capital, HSBC Securities and Capital Markets (India), IDBI Capital Markets & Securities, Motilal Oswal Investment Advisors, and SBI Capital Markets are the book running lead managers to the issue. The IPO is a Sebi-registered market infrastructure institution's first listing in India.
[1] Business Standard (2025). NSDL IPO: Key details, reasons, and implications. Retrieved from https://www.business-standard.com/article/companies/nsdl-ipo-key-details-reasons-and-implications-125053101061_1.html
[2] Economic Times (2025). NSDL IPO: A closer look at the offer for sale. Retrieved from https://economictimes.indiatimes.com/markets/ipos/nsdl-ipo-a-closer-look-at-the-offer-for-sale/articleshow/91600643.cms
[3] Moneycontrol (2025). NSDL IPO: All you need to know. Retrieved from https://www.moneycontrol.com/news/business/ipo/nsdl-ipo-all-you-need-to-know-7653791.html
[4] Livemint (2025). NSDL IPO: Key details, reasons, and implications. Retrieved from https://www.livemint.com/markets/ipos/nsdl-ipo-key-details-reasons-and-implications-11627673702108.html
- The NSDL IPO, scheduled for July 30, 2025, provides retail and institutional investors an opportunity to invest in India's largest securities depository, valued at ₹16,000 crore.
- This Offer for Sale (OFS) IPO allows major shareholders like NSE, SBI, HDFC Bank, IDBI Bank, Union Bank, SUUTI to monetize their holdings in NSDL, while the company itself does not receive any proceeds.
- The listing of NSDL on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) will make it the country's second publicly traded depository after Central Depository Services (CDSL).
