NSDL Posts a 4% surge in Q4 Net Earnings, Gearing Up for upcoming IPO
Mumbai, India - The National Securities Depository Limited (NSDL) announced a 4.77% surge in consolidated net profit to Rs 83.3 crore for the quarter ending March 2025 (Q4 FY25), with a total income of Rs 394 crore, a 9.94% increase from the same quarter last fiscal (Q4 FY24). For the financial year 2024-25, the depository's net profit surged by 24.57% to Rs 343 crore, while total income grew 12.41% to Rs 1,535 crore.
The board of directors recommended a final dividend of Rs 2 per equity share for FY 2024-25, subject to shareholder approval. The NSDL is a key player in India's financial system, facilitating the holding and transfer of securities in dematerialized form. As of FY24, the company's demat account holders spanned over 99% of India's pin codes and 186 countries worldwide, supported by over 63,000 service centers across all states and Union Territories.
Ahead of its Initial Public Offering (IPO), the NSDL reduced the offer size from 5.72 crore shares initially mentioned in its draft prospectus to 5.01 crore shares. This offering is entirely an offer-for-sale (OFS), with existing stakeholders, including the National Stock Exchange of India (NSE), State Bank of India (SBI), and HDFC Bank, selling their shares. The IPO proceeds will not benefit the NSDL as it is an OFS. The markets regulator, SEBI, has extended the deadline for NSDL's listing to July 31, making it the country's second publicly traded depository company after the Central Depository Services Limited (CDSL), listed in 2017.
While the exact reasons for the reduction in the IPO offer size are not specified, it could be due to market conditions, investor demand, and regulatory considerations. The move aims to expedite the IPO process and position the IPO favorably in terms of valuation and investor interest.
The surge in NSDL's net profit and total income demonstrates a promising health in the business sector, which could attract more investing opportunities in the finance realm. As the NSDL proceeds with its Initial Public Offering (IPO), its strategic moves, such as reducing the offer size, indicate a focus on achieving a favorable valuation and generating interest among potential investors.
