India’s National Securities Depository Limited (NSDL) witnessed strong investor response on Day 1 of its ₹4,012 crore IPO, driven by healthy retail and non-institutional demand. With a subscription of over 100% on the first day, the IPO signals investor confidence in the country’s capital market infrastructure.
The ₹4,012 crore initial public offering (IPO) of National Securities Depository Limited (NSDL) was fully subscribed on Day 1 of bidding, reflecting robust interest from retail and non-institutional investors. By 1:15 PM on July 30, the IPO received bids for over 3.57 crore shares versus 3.51 crore shares on offer, with retail subscription at 114% and non-institutional at 142%.
The offering, open until August 1, follows NSDL’s allotment of ₹1,201.4 crore worth of shares to institutional investors at ₹800 per share through its anchor round on July 29. The company has priced the issue between ₹760 and ₹800 per share, translating into a post-issue valuation of ₹16,000 crore.
NSDL’s IPO consists solely of an offer for sale (OFS) of 5.01 crore shares by existing shareholders, including State Bank of India (SBI), HDFC Bank, IDBI Bank, Union Bank of India, National Stock Exchange (NSE), and SUUTI. As it is a pure OFS, NSDL will not receive any proceeds from the IPO.
The company’s IPO structure reserves 50% for Qualified Institutional Buyers (QIBs), 35% for Retail Individual Investors (RIIs), and 15% for Non-Institutional Investors (NIIs). The minimum bid lot is 18 shares, requiring a base investment of ₹14,400.
Also Read: IPO Breakdown: Who’s Selling What in NSDL?
With this IPO, NSDL will become the second publicly listed depository in India, after CDSL’s 2017 listing. The listing is also in line with SEBI’s regulatory requirements, which mandate that no single entity can hold more than 15% in a depository. IDBI Bank and NSE will reduce their stakes to comply with these norms.
Financially, NSDL reported a strong performance in FY 2024-25, with net profit rising by 24.57% to ₹343 crore and total income climbing 12.41% year-over-year to ₹1,535 crore. The depository maintains a steady annuity-like income structure and benefits from long-term contracts with market participants.
The IPO’s current grey market premium (GMP) indicates potential listing gains of around 17%, further boosting investor sentiment. However, regulatory compliance and increasing competition in the depository space remain critical watchpoints.
From a valuation perspective, the offer is priced at a P/E of approximately 46x, which analysts believe is fair considering NSDL’s sectoral leadership, stable cash flows, and robust IT infrastructure. The company’s early role in pioneering dematerialisation post the Depositories Act, 1996, positions it strongly in India’s evolving financial architecture.
Shares of NSDL are expected to be listed on the NSE on August 6, marking a significant milestone in India’s capital market infrastructure evolution.
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