The NSDL IPO is generating a lot of buzz right now, and for good reason. National Securities Depository Limited (NSDL), founded in 1996, has played a crucial role in India’s shift from paper-based to electronic securities, bringing greater efficiency and protection to the financial market.
As the country’s largest depository, NSDL’s upcoming IPO is attracting major attention from investors and market analysts.
In this blog, we’ll explore the significance of this IPO, its financial performance, industry position, and what it could mean for potential investors.
Let’s dive right in!
NSDL IPO Key Details
The NSDL IPO is being offered as an Offer for Sale (OFS), where current shareholders will sell a part of their stakes. Here are the key details:
| Details | Information |
| IPO Opening Date | Expected in the last week of July 2025. |
| Allotment Finalization | To be announced. |
| Listing Platforms | BSE |
| Expected Listing Date | First week of August 2025. |
| Retail Trading Platforms | Investors can apply through online retail trading platforms. |
| Price Band | Expected to be around ₹750 to ₹755 per share |
| Total IPO Value | Approximately ₹3,000 crore |
| Company | National Securities Depository Limited (NSDL) |
| Minimum Investment | Expected to be around ₹14,850 for one lot (approximately 19 shares). |
| IPO GMP | As of now, the GMP quotation has not yet started. |
| Registrar | Link Intime India Private Limited. |
Note: These details are subject to change upon official announcements.
Additional Information About National Securities Depository Limited IPO
- NSDL filed its initial documents for the IPO (called the red herring prospectus or DRHP) in July 2023 and got approval from SEBI in September 2024. This approval is valid until September 2025. However, since NSDL is a key player in the financial market, it needs a few more clearances, some of which are close to expiring.
- This IPO will be a complete offer for sale (OFS), meaning 5.72 crore equity shares will be sold. Major stakeholders, including IDBI Bank, National Stock Exchange (NSE), State Bank of India (SBI), HDFC Bank, and Union Bank of India, will be selling their shares.
IPO Issue Structure
- Qualified Institutional Buyers (QIBs): Up to 50% of the offer. (source)
- Non-Institutional Investors (NIIs): At least 15% of the offer. (source)
- Retail Individual Investors (RIIs): At least 35% of the offer.
What is NSDL?
National Securities Depository Limited (NSDL) is India’s first central securities depository, established in August 1996.
It provides a secure and efficient platform for holding and transferring securities electronically, eliminating the risks associated with physical certificates, such as theft, damage, or forgery.
Key Functions of NSDL
- Dematerialization: NSDL converts physical share certificates into electronic form, simplifying the process of holding and transferring securities.
- Demat Accounts: It offers demat accounts where investors can hold their securities electronically, similar to how bank accounts hold money.
- Settlement Services: NSDL ensures the efficient transfer of securities during trades, streamlining the settlement process.
- Corporate Actions: It manages processes like dividends, bonus issues, and rights issues, ensuring timely and accurate execution.
- E-voting Services: NSDL facilitates electronic voting for corporate resolutions, promoting shareholder engagement and transparency.
NSDL’s Market Presence
| Category | Data |
| Client Accounts (Active) | 3,88,17,704 |
| Demat Custody Value | ₹470.38 Lakh Crore (US$ 5,494 billion) |
| Demat Custody Breakdown | Shares: ₹3,85,45,057 CroreDebt/Bonds: ₹50,63,015 CroreCP: ₹4,93,866 CroreSovereign Gold Bonds: ₹23,828 Crore |
| Equity Settlement (NSE + BSE) | Quantity: 1,946 CroreValue: ₹7,78,333 Crore |
| Number of Companies with 75%+ Dematted Shares | 24,887 |
This table focuses on NSDL’s market presence, the size of its operations, and its financial stability—all key points that makes it an attractive prospect for potential investors in the upcoming IPO.
NSDL’s Company Financials
As of January 31, 2025, NSDL manages assets worth ₹500 lakh crore, a major milestone in its growth journey. It serves over 31.46 million active demat accounts through 283 registered depository participants, reaching more than 99% of India’s pin codes and account holders in 186 countries.
National Securities Depository Limited (NSDL) has shown strong financial performance over the years, highlighting its important role in India’s securities market.
Here’s a closer look at the financial performance from 2018-19 to 2022-23:
Total Income (₹ in crores)
| Fiscal Year | Total Income | Year-on-Year Growth (%) |
| 2018-19 | 260 | – |
| 2019-20 | 290 | 11.54 |
| 2020-21 | 389 | 34.14 |
| 2021-22 | 427 | 9.76 |
| 2022-23 | 486 | 13.8 |
Key Highlights
- Consistent Growth: Over the five-year period, the total income has grown steadily, achieving a Compound Annual Growth Rate (CAGR) of 16.9%.
- Resilience During Pandemic: Despite the challenges posed by the COVID-19 pandemic, NSDL reported a significant income increase of 34.14% in the fiscal year 2020-21 compared to the previous year.
- Recent Performance: In the fiscal year 2022-23, the total income reached ₹486 crores, marking a 13.80% growth from the previous year.
These figures underscore a robust financial health and its critical role in supporting and enhancing the infrastructure of India’s financial markets.
Understanding the Depository & Securities Industry
India has two major depositories—NSDL and CDSL—which help investors store and trade securities electronically. This makes transactions safer, faster, and more efficient. The industry’s growth is directly linked to stock market trends, regulatory changes, and tech advancements.
Rise in Demat Accounts & Retail Investing
More and more people are opening demat accounts, thanks to:
- Easy digital access: Online trading and simplified account opening.
- Financial awareness: People are learning more about investments.
- Stock market performance: Higher returns are attracting new investors.
This surge benefits depositories like NSDL, boosting their revenues from account fees and transactions.
NSDL vs. CDSL: A Comparative Overview
| Feature | NSDL (National Securities Depository Limited) | CDSL (Central Depository Services Limited) |
| Year of Establishment | 1996 | 1999 |
| Regulator | SEBI | SEBI |
| Ownership | Promoted by institutions like NSE, IDBI Bank, and UTI | Promoted by BSE |
| Market Position | Larger in terms of asset value under custody | Larger in terms of the number of demat accounts |
| Demat Custody Value (₹ Lakh Crore) | 470.38 | ~50% lower than NSDL |
| Active Demat Accounts | 3.88 crore | 10.25 crore (higher retail participation) |
| Geographical Coverage | 99.32% of Indian pin codes | 99% of Indian pin codes |
| Depository Participants (DPs) | 290 | 592 |
| DP Service Centres | 63,554 | more than 24,000 |
| Major Clients | Institutional and HNI investors | Retail investors |
| Revenue from Operations (FY 2023-24) | Not publicly available | ₹812.26 crore |
| Profit After Tax (FY 2023-24) | Not publicly available | ₹419.55 crore |
| Earnings Per Share (EPS) | Not available | ₹20.07 |
| Return on Equity (ROE) | Not available | 27.84% |
Key Takeaways
- NSDL dominates in asset value, handling a significant portion of India’s institutional investments.
- CDSL leads in the number of demat accounts, fueled by higher retail investor participation.
- NSDL has a wider DP network, while CDSL benefits from strong backing by BSE.
- CDSL’s financials indicate strong profitability, but NSDL’s undisclosed figures likely showcase its strength in institutional services.
Why is NSDL launching its IPO?
NSDL IPO is mainly about giving its existing shareholders a chance to sell some of their stakes while also gaining the perks of being a publicly listed company—like greater visibility and a stronger brand presence in the market.
What should investors keep in mind?
Before jumping in, potential investors should be aware of a few key risks:
- Regulatory Challenges: NSDL operates in a highly regulated space and competes with another major depository (CDSL), so it’s always under scrutiny.
- Data Security Concerns: Handling massive amounts of financial data means strict compliance with privacy and security laws. Any slip-ups here could lead to legal trouble and harm NSDL’s reputation.
For those considering investing, it’s best to stay updated with official announcements on the IPO dates, price band, and other details before making a decision.
Who Should Consider Applying for NSDL IPO?
- Long-Term Investors: Given the strong financial performance, steady income growth, and dominance in institutional asset custody, long-term investors who believe in the growth of India’s securities market may find this IPO appealing.
- Institutional & HNI Investors: NSDL primarily serves large institutions, and its IPO allocation favors Qualified Institutional Buyers (QIBs) and Non-Institutional Investors (NIIs), making it a better fit for those with higher capital.
- Investors Looking for Stability: With ₹500 lakh crore in assets under custody and a strong market position, National Securities Depository Limited presents itself as a relatively stable investment in the financial services sector.
- Tech & Financial Market Enthusiasts: Investors who understand the role of depositories in India’s evolving financial ecosystem and believe in the digital transformation of securities storage may find NSDL’s business model attractive.
Who Can Skip NSDL IPO?
- Short-Term Traders & GMP-Focused Investors: Since the upcoming IPO is an Offer for Sale (OFS) with no fresh capital infusion, there might be limited short-term price momentum compared to high-growth tech IPOs. If listing gains are the primary objective, waiting for GMP trends might be a better approach.
- Retail Investors with a Small Budget: Retail allocation is only 35%, and with a minimum investment of around ₹14,850 per lot, it may not be suitable for small investors who prefer lower-risk investments.
- Investors Seeking High Growth Potential: While NSDL has stable revenue growth, its business model is not as high-growth as sectors like fintech, EV, or AI. Those looking for aggressive capital appreciation might want to explore other IPOs.
- Risk-Averse Investors: Regulatory challenges, security compliance risks, and competition from CDSL could impact NSDL’s future performance. If risk tolerance is low, this IPO may not be the best fit.
Bottom Line
NSDL IPO is gearing up to be a game-changer in India’s financial markets. With its strong financials, unmatched dominance in institutional asset custody, and a pivotal role in the securities ecosystem, it has naturally captured the attention of investors across the board.
That said, like any investment opportunity, it’s crucial to weigh both the potential rewards and underlying risks before making a move. Whether you’re a long-term investor banking on India’s financial sector growth or just intrigued by this high-profile listing, keeping up with official updates and market sentiment will be essential.
Stay tuned—this IPO could make waves!
Suggested Read: OYO IPO 2025: A Revolutionary Breakthrough for the Hospitality Industry
FAQs
Is it good to invest in NSDL IPO?
Investing in its IPO can be a good opportunity, but whether it’s a smart choice depends on several factors:
- Strong Market Position: This one is India’s oldest and second-largest depository (after CDSL). It plays a crucial role in the securities market, handling demat accounts and electronic securities.
- Revenue & Growth: The company has a stable revenue stream from transaction charges, corporate actions, and investor accounts, which makes it a relatively less risky investment.
- IPO Valuation & Pricing: The key factor will be the IPO valuation. If it’s priced attractively, it could offer good listing gains and long-term potential.
- Competition & Regulatory Risks: NSDL competes with CDSL, which has been a favorite among retail investors due to its better profitability margins. Regulatory changes in the depository business can also impact NSDL’s revenue.
- Overall Market Conditions: IPO performance often depends on broader market sentiment. If the stock market is bullish, NSDL’s IPO could see strong demand.
Verdict? If the valuation is reasonable and you believe in the long-term growth of India’s financial markets, the IPO could be a solid investment. But always compare with CDSL and analyze financials before jumping in.
What is the share price of NSDL?
Since it is is currently not listed, there’s no market-traded share price yet. The IPO price band will be determined when the company finalizes its issue details. To get the exact share price once announced, check NSE/BSE filings or the official IPO prospectus.
How to get NSDL IPO?
To apply for NSDL’s IPO, follow these simple steps:
- Check IPO Details: Keep an eye on the IPO dates, price band, and issue size. These will be available on NSE, BSE, and broker platforms.
- Use Your Demat Account: You need a Demat account with both to apply. (Ironically, you may apply for NSDL’s IPO through a CDSL-linked Demat account too!)
- Apply via UPI or ASBA:
- Most brokers allow IPO applications via UPI.
- Alternatively, you can apply through your bank’s ASBA (Application Supported by Blocked Amount) feature in net banking.
- Most brokers allow IPO applications via UPI.
- Wait for Allotment: If your bid is successful, shares will be credited to your Demat account before listing.
- IPO Listing: Once NSDL is listed on NSE/BSE, you can buy or sell shares in the secondary market.
Pro tip: If you’re a retail investor, applying through multiple family members’ accounts can improve allotment chances.
What is NSDL and CDSL in IPO?
NSDL (National Securities Depository Limited) and CDSL (Central Depository Services Limited) are India’s two depositories that hold securities (stocks, bonds, mutual funds, etc.) in electronic form.
- NSDL-in-IPO: Backed by major institutions like the NSE, SBI, and other financial bodies.
- CDSL: More retail-focused and linked with BSE.
Both depositories facilitate IPO allotments, stock transfers, and corporate actions (like dividends and bonuses). When you apply for an IPO, the allotted shares are credited to your Demat account in either NSDL or CDSL, depending on where your broker is registered.
Think of both like digital lockers where your shares are stored. Your Demat account is with one of them, but you can still buy and trade stocks from both exchanges (NSE/BSE).
If you wish to learn about the world of stock investing in detail, we suggest you check out our beginner-friendly series Stock Smart: The Basics:
