NSDL’s ₹4011.60 cr IPO Set to Hit Markets in July: What Investors Should Know

NSDL is India's largest depository by market share and assets under custody. With NSDL planning a public offering to raise an anticipated $400 million, it is not just another IPO. Rather, it is a rare opportunity to have a piece of the infrastructure that forms the operational backbone of the economy.

So, if this announcement has piqued your interest, this is a good time to begin your homework as the NSDL IPO is expected to hit the markets on July 30, 2025.

IPO Structure and Key Details

Price Band: ₹760 -₹800

Position: Under IPO structure and key details, after dates

Date: July 30, 2025 to August 1, 2025

Listing Date: Aug 6, 2025

Allotment Date: Aug 4, 2025

Credit of shares to the demat account: Aug 5, 2025

Initiation of Refunds: Aug 5, 2025

• Offer for Sale (OFS): The NSDL IPO is a pure offer for sale, meaning no new shares are being issued. Instead, existing shareholders – including IDBI Bank, National Stock Exchange (NSE), and Union Bank of India – are offloading their stakes.

• Issue Size: The offer size has been trimmed to 50.15 million shares (from an initial 57.26 million), with an estimated total raise of ₹4011.60 crores.

• Listing: Shares will be listed on BSE, giving you ample liquidity and visibility as an investor.

• Lead Managers: The IPO is being managed by a consortium of top investment banks, including ICICI Securities Ltd, Axis Capital Ltd, HSBC Securities and Capital Markets (India) Pvt Ltd, IDBI Capital Markets and Securities Ltd, Motilal Oswal Investment Advisors, and SBI Capital Markets Ltd.

Business Model and Financial Performance

NSDL is not just a depository – it is the backbone of the Indian securities market, facilitating the dematerialisation, settlement and safekeeping of securities in electronic form. Its clientele includes exchanges, brokers, custodians, mutual funds and institutional investors, making it a systemically important financial utility.

• Revenue Streams: NSDL earns through issuer charges, transaction fees, and value-added services like e-voting, KYC authentication, and digital vault services.

• Financials: The company has shown consistent growth, with revenue rising from ₹1,099.8 crore in FY23 to ₹1,535 crore in FY25, and net profit increasing from ₹234.8 crore to ₹343 crore over the same period.

• Profitability: NSDL enjoys robust margins, with an EBITDA margin of 25.1% reported for the March 2025 quarter.

Strengths of NSDL

• India’s first and leading depository operating a wide range of technology-driven businesses
  
• Strong focus on technology-led product innovation
  
• Robust IT infrastructure, risk management frameworks and cyber-security measures focused on ensuring the safety and integrity of the depository system
  
• Stable revenue base with a significant proportion of recurring revenue
  
• Diversified asset classes held in Demat Accounts and well-diversified business verticals
  
• Experienced senior management team.
  

Risks of NSDL:

• Shift in investor references may adversely impact demand for its services
  
• Failure to expand service offerings and market reach through innovation and technology may adversely impact business
  
• Dependence on securities market trading volumes may adversely impact business and financial performance
  
• Dependence on complex IT systems exposes it to operational disruptions, security breaches and regulatory penalties
  
• Non-compliance with regulatory obligations may lead to legal and regulatory actions
  
• Failure to compete effectively in a highly regulated and competitive industry may adversely impact its business and financial performance
  
• Dependence on depository participant network may adversely impact growth and financial performance
  
• Non-compliance by its subsidiary with regulatory requirements may adversely affect its reputation, business and financial performance
  
• Past SEBI observations and warnings may lead to future regulatory actions.
  
• Risk of future SEBI actions due to past non-compliances
  
• Uncertainty in successful implementation of strategic plans may impact growth and revenue
  
• Inability to obtain or renew approvals may adversely affect its operations
  
• Mandatory dilution of shareholding by principal shareholders may impact its ownership structure
  
• Outstanding legal proceedings involving the company, directors and subsidiaries
  
• Inadequate insurance coverage may expose it to significant losses
  

Conclusion

If you are looking to invest in a renowned, established player in India’s securities market, the NSDL IPO is an opportunity worth considering. This IPO is taking place during a period of considerable growth in India's capital markets, which will only enhance NSDL's importance. Given that this is an IPO without new capital and a business model primarily geared toward institutions, investment thesis here should be long-term stability vs a quick profit on the listing.