Shares of National Securities Depository Ltd (NSDL) made a strong debut on the BSE and NSE on August 6, 2025, marking its position as the second depository services company listed on Indian stock exchanges, after Central Depository Services Ltd (CDSL). This listing represents a major step forward for the capital market infrastructure in India, and this was seen as a major milestone by investors across segments.
NSDL's initial public offering of ₹4,011 crore drew huge interest as the issue saw an uptake of 41 times. Investor appetite was clear from the total bids received, which exceeded ₹1.1 lakh crore.
The Qualified Institutional Buyer (QIB) portion led with a subscription of 104 times.
Non-Institutional Investors (NIIs) followed, subscribing 35 times.
The Retail Individual Investor (RII) category saw a subscription of roughly 8 times, while the employee portion was subscribed to 16 times.
The company allotted shares at ₹800 per piece, and the grey market speculation put the company listing at about ₹935, or a 17% premium above the offering price. The grey market strength displayed strong bullish sentiment and confidence in the fundamentals of the company.
The IPO was only an Offer for Sale (OFS) with no new capital raised. Rather, existing shareholders, including the National Stock Exchange (NSE), IDBI Bank, State Bank of India (SBI), HDFC Bank, Union Bank of India, and SUUTI, sold a part of their stake.
IDBI Bank sold 2.2 crore shares and made ₹1,778 crore. As the shares were bought for ₹2 each, it was a 400x return on investment by IDBI Bank, and they also showed long-term value creation.
Similarly, the SBI sold 2.3 crore shares, raising around ₹1,840 crore. With a similar investment cost, SBI also locked in a 400x return on its investment,showcasing how institutional investors can lock in mega returns when investing in infrastructure companies at their early stage.
NSDL plans to enhance its IT infrastructure, improve its operational efficiencies, and provide a greater range of products via its data and payment services. The company is looking to deepen its market penetration and improve its operational resilience through digital transformation in the future.
In FY25, NSDL posted revenue of ₹1,420 crore, with a net profit of ₹343 crore and an operating margin of 26.4%. Revenue and profits experienced CAGRs of 18% and 21%, respectively, over the past three years.
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At the upper band, NSDL's valuation is 17.16x FY25 EPS, which is lower than CDSL's 25.2x, making it relatively appealing. Key risks include regulatory constraints on transaction pricing, dependence on market turnover, and competition from CDSL, especially from retail investors.