India’s IPO landscape is buzzing again, and this time it’s for one of the country’s most critical market infrastructure players – National Securities Depository Limited (NSDL). With a strong legacy of transforming India’s securities market, NSDL is now headed to the stock exchanges with a ₹3,000 crore IPO — and there’s a lot to unpack.
Who is NSDL and why does it matter?
NSDL was established in 1996 when India’s securities market was undergoing a major shift from paper-based to electronic trading. This transition, called dematerialisation, made the stock market more secure and efficient — and NSDL was at the heart of it.
Over the years, NSDL has become a key part of the Indian financial system. It acts as a depository that enables investors and brokers to hold and settle securities electronically. Its services form the backbone of many capital market operations in India today.
Why is NSDL launching an IPO now?
NSDL’s upcoming IPO is a pure offer for sale (OFS). That means no fresh shares are being issued — instead, existing shareholders such as IDBI Bank, NSE, HDFC Bank, SBI, and others will offload a portion of their stake to the public.
The objective is not to raise capital for the company itself, but to:
- Enable existing stakeholders to monetise their holdings
- Gain the benefits of public listing on the BSE
- Strengthen the balance sheets of selling stakeholders like IDBI Bank, SBI, and HDFC Bank
This is similar to the Tata Technologies IPO, which benefited Tata Motors (the parent company) even before listing, simply because it held a significant stake in the IPO-bound entity.
Where does NSDL stand now?
NSDL currently holds the distinction of being one of India’s largest securities depositories. As of March 31, 2023, it had:
- 31.46 million active demat accounts
- Presence in 99% of Indian pin codes and 186 countries globally
- A network of 283 registered depository participants
NSDL financial performance (FY21-FY23)
| Financial Year | Revenue from Operations (₹ million) | EBITDA (₹ million) | Profit After Tax (₹ million) |
| FY21 | ₹4,675.69 | ₹2,644.62 | ₹1,885.65 |
| FY22 | ₹8,092.58 | ₹3,052.42 | ₹2,110.93 |
| FY23 | ₹10,219.88 | ₹3,282.50 | ₹2,348.11 |
The company’s EBITDA has grown at a CAGR of 11.41%, and profit has steadily increased YoY, indicating a strong operational foundation.
NSDL IPO details (expected)
| Particulars | Details |
| Issue Type | Offer for Sale (OFS) |
| Issue Size | ₹3,000 crore (approx) |
| Number of Shares Offered | 5,72,60,001 equity shares |
| Price Band | Yet to be announced |
| Lot Size | Yet to be announced |
| Listing Exchange | BSE |
| IPO Launch Timeline | Expected by April 2025 |
Shareholding pattern (pre-IPO)
| Shareholder | Stake (%) |
| IDBI Bank | 26.10% |
| National Stock Exchange | 24.00% |
| HDFC Bank | 8.95% |
| State Bank of India (SBI) | 5.00% |
| Union Bank of India | ~2.00% |
| SUUTI | ~2.00% |
| Others | Remaining % |
The IPO will see these entities selling part of their stakes. For example, IDBI Bank is offering 2.22 crore shares, while HDFC Bank, SBI, and Union Bank are also participating in the sale.
Why should you invest in the NSDL IPO?
Advantages
- Strong market position: NSDL is a key market infrastructure institution
- Consistent profitability and revenue growth
- Widespread demat account penetration and pan-India presence
- Comparative scarcity: Only CDSL is listed in this space so far
- Investor interest: Backed by high-stakeholders like NSE, HDFC Bank, SBI
Disadvantages
- No fresh capital means the company itself doesn’t benefit financially
- Returns depend heavily on post-listing price movement
- Limited shareholder reservation details at this point
- Regulatory overhang as DRHP was earlier kept in abeyance by SEBI
Bottomline
The NSDL IPO is more than just a public issue — it’s a reflection of how India’s financial market infrastructure continues to evolve. With a solid track record, key institutional backing, and strong financials, it might be a good opportunity for investors seeking exposure to a critical backbone of the capital markets.
However, make sure to consider the nature of the IPO and do your research before investing.
