NSDL IPO 2025: Why Should You Invest in It?

Last Updated on August 1, 2025 12:40:25 PM by Vivek Makwana

Curious about the NSDL IPO 2025? Discover why you should consider investing, key financials, GMP updates, risks, and expert insights before applying.

India’s financial markets are evolving rapidly, and the National Securities Depository Limited (NSDL) IPO in 2025 offers investors a unique opportunity to own a stake in a critical pillar of this ecosystem. As India’s oldest and largest depository, NSDL operates in a duopoly alongside the Central Depository Services Limited (CDSL), managing dematerialized securities for millions of investors. This blog post delves into why the NSDL IPO is a compelling investment, covering its business model, strengths, risks, peer comparison, and valuation insights.

1. Business Overview – A Duopoly in the Indian Capital Market

Founded in 1996, NSDL is India’s premier depository, handling over Rs430 lakh crore in assets and managing 3.6 crore active demat accounts as of FY23. Alongside CDSL, it forms a duopoly in India’s depository services, a critical infrastructure for the capital markets. NSDL facilitates the seamless transfer, settlement, and custody of securities in dematerialized form, working through 276 Depository Participants (DPs) such as banks, brokers, and financial institutions.

While CDSL leads in retail demat accounts, NSDL dominates in total asset value and institutional clients, including large corporates and financial entities. This duopoly ensures a stable market position, as depositories are integral to India’s financial ecosystem. With India’s demat account base surpassing 15 crore by 2025, driven by rising retail participation and digitalization, NSDL is well-poised to capitalize on this growth. Its role in enabling secure, paperless trading aligns with the increasing financialization of savings, making it a backbone of India’s capital markets.

Investment Rationale: NSDL’s entrenched position in a duopolistic market ensures long-term demand, bolstered by India’s growing investor base and market activity.

2. NSDL Strengths & Growth Drivers

NSDL’s competitive edge stems from several key strengths:

• Institutional Backing: Promoters like the National Stock Exchange (NSE, 24%), IDBI Bank, SBI, HDFC Bank, SUUTI, and Union Bank provide credibility, financial stability, and strategic access to market networks.
• Scalable Technology: NSDL’s robust cybersecurity framework and near-100% system uptime ensure operational reliability. Its seamless API integrations with DPs enhance efficiency and scalability.
• Regulatory Credibility: As a SEBI-designated Market Infrastructure Institution (MII), NSDL enjoys high trust and compliance visibility, reinforcing its market position.
• Retail Participation Surge: The post-2020 boom in demat accounts, driven by digital platforms and financial literacy, fuels long-term depository activity. India’s investor base is projected to grow further, benefiting NSDL.
• Diversified Revenue Streams: Beyond core depository charges, NSDL earns from issuer services, e-voting platforms, and e-Governance initiatives like Aadhaar authentication and PAN–Aadhaar linking, reducing reliance on a single revenue source.

These factors position NSDL as a resilient player with strong growth potential, capable of leveraging both institutional and retail market trends.

Investment Rationale: NSDL’s diversified revenue, technological prowess, and institutional support make it a stable, growth-oriented investment.

3. Peer Comparison – NSDL vs. CDSL

NSDL and CDSL dominate India’s depository landscape but cater to different segments:

While CDSL leads in account numbers, NSDL’s dominance in asset value and institutional focus highlights its strength in high-value transactions. Given that CDSL trades at a higher P/E (~35–40x) compared to NSDL’s ~46.6x, the NSDL IPO appears fairly valued, especially considering its stronger earnings per share.

Investment Rationale: NSDL’s valuation appears reasonable compared to CDSL, offering value for investors seeking exposure to a market leader.

4. NSDL Risks & Challenges

Investors should consider the following risks, as outlined in the Red Herring Prospectus (RHP):

• Revenue Dependence: Over 50% of revenue comes from depository charges, which could be impacted by regulatory caps or a slowdown in market activity.
• Cybersecurity Threats: Handling vast amounts of sensitive investor data makes NSDL a target for cyberattacks, potentially eroding trust and operations.
• OFS Structure: The IPO is a 100% Offer for Sale (OFS). No new capital will go to NSDL — proceeds benefit existing shareholders only.
• Competitive Pressure: CDSL’s rapid growth in the retail segment could challenge NSDL’s market share, particularly if retail investors prioritize lower-cost services.
• Regulatory Oversight: As an MII, NSDL faces stringent SEBI regulations, increasing compliance costs and operational scrutiny.

Investment Consideration: While these risks are notable, NSDL’s diversified revenue and established market position mitigate some concerns. The OFS structure, however, warrants caution for investors seeking companies with immediate growth funding.

5. NSDL IPO Snapshot & Valuation View

Here’s a snapshot of the IPO details (per RHP and IPO Central):

• IPO Type: 100% Offer for Sale
• Total Shares Offered: 5.0145 crore equity shares
• Price Band: Rs760–Rs800 per share
• Face Value: Rs2 per share
• Lot Size: 18 shares (Rs14,400 minimum investment)
• Total Issue Size: Rs4,011.6 crore (upper band)
• Retail Quota: 35%
• QIB Quota: 50%
• HNI Quota: 15%
• IPO Dates: July 30 – August 1, 2025
• Allotment Date: August 4, 2025
• Anchor Book Opens: July 29, 2025
• Listing Date (Expected): August 6, 2025
• Stock Exchanges: Only BSE

Financial Snapshot (FY25):

• Revenue: Rs1,535.2 crore
• Profit After Tax (PAT): Rs343.1 crore
• EBITDA: Rs492.9 crore
• Net Worth: Rs2,005.3 crore
• Assets: Rs2,984.8 crore
• Reserves and Surplus: Rs232.3 crore
• ROE: 17.11%
• ROCE: 22.70%
• EPS (Basic): Rs17.16
• P/E Pre-IPO: 46.63x

Valuation & GMP View:

• P/E Ratio: ~46.6x at the upper price band (based on FY25 EPS)
• Grey Market Premium (GMP): Rs135–Rs150 (17–19% listing gain expected)
• Comparison: CDSL trades at a P/E of ~35–40x, suggesting NSDL’s IPO is moderately priced but backed by strong growth and financials.

Investment Rationale: The IPO’s valuation is attractive relative to CDSL, with GMP indicating moderate listing gains. The retail-friendly lot size (Rs14,400) enhances accessibility.

6. Final Thoughts

The NSDL IPO 2025 is a rare opportunity to invest in a cornerstone of India’s financial markets. With a duopolistic market structure, robust financials (Rs1,535.2 crore revenue, 17.11% ROE), and a surge in demat account growth, NSDL is well-positioned for long-term stability. Its institutional backing, scalable technology, and diversified revenue streams further enhance its appeal as a steady compounder.

However, the 100% OFS structure means no fresh capital for growth, potentially capping short-term upside. The GMP of 17–19% suggests moderate listing gains, but the real value lies in NSDL’s long-term strategic role in India’s capital markets. Compared to CDSL’s higher P/E, NSDL’s ~46.6x P/E is justified by its strong fundamentals.

Recommendation: The NSDL IPO suits long-term investors looking for stable, market-linked growth. While listing gains may be modest, its role in India’s financial ecosystem ensures enduring relevance. Always consult a SEBI-registered financial advisor before investing.

NSDL IPO Allotment Status

Registrar Website
Visit the IPO registrar’s site MUFG Intime India Private Limited On August 4, 2025 (Expected Time 11:00 PM), select NSDL IPO, then input your PAN, Demat/DP client ID, or application number. Submit to view your allotment status.

Demat Account or Broker App
Log in and navigate to the IPO section, select NSDL IPO, and check your allotment status. Brokers like Angel One will also notify via email/app notification.

❓ FAQ – NSDL IPO 2025

1. What is NSDL and why is its IPO important?
NSDL (National Securities Depository Limited) is India’s first and largest depository, responsible for holding and managing dematerialized securities. Its IPO is important because it offers investors a chance to own a stake in a core infrastructure company in the Indian capital market.

2. Is NSDL a government company?
NSDL is not a government-owned company. It is promoted by key financial institutions like NSE (24%), IDBI Bank, SBI, HDFC Bank, SUUTI, and others, making it institutionally backed but not government-owned.

3. What is the price band and lot size for NSDL IPO 2025?
The price band is Rs760–Rs800 per share. The minimum lot size is 18 shares, requiring a minimum investment of Rs14,400 for retail investors.

4. What is the financial performance of NSDL in FY25?
As of FY25, NSDL reported revenue of Rs1,535.2 crore and a PAT of Rs343.1 crore, with a Return on Equity (ROE) of 17.11%. Its EPS stands at Rs17.16, and it has a P/E valuation of ~46.6x at the upper price band.

5. What are the risks associated with NSDL IPO?
Key risks include dependency on depository revenue, cybersecurity threats, no fresh capital raised due to 100% OFS, and competition from CDSL in the retail segment.

6. Is NSDL IPO suitable for long-term investors?
Yes, NSDL IPO is considered suitable for long-term investors due to its strong market position, financial performance, and strategic role in India’s financial infrastructure. However, investors should be aware of the OFS structure and regulatory risks.

7. When will NSDL IPO list on the stock exchanges?
The listing date is August 6, 2025, on Only BSE.

📢 Sources:

• You Can Read The Official NSDL DRHP filing on SEBI’s Website For Detailed Financials, Shareholding Pattern, and Risk Factors.