On Wednesday, 6 August 2025, NSDL Ltd shares successfully debuted on the stock market, with its shares opening at ₹880 each, reflecting a 10% premium over the issue price of ₹800. The stock has continued to build on these initial gains, indicating strong investor confidence.
This listing marks a significant moment for India’s capital markets, as NSDL becomes the second depository service provider to be publicly listed, after Central Depository Services Ltd. (CDSL).
Subscription Details and Investor Interest
NSDL’s ₹4,011 crore IPO, available for subscription for three days, attracted strong interest from both institutional and retail investors. The issue was subscribed 41 times overall, with institutional investors leading the charge. The portion allocated for Qualified Institutional Buyers saw demand exceeding the available shares by 104 times, while the Non-Institutional Investors segment was subscribed 35 times. The retail portion was oversubscribed 8 times, with demand significantly exceeding the available shares.
The issue, which was a pure Offer for Sale, did not raise fresh capital for the company but allowed existing shareholders, including major banks, to monetise part of their stake.
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Early Gains for Anchor Investors
Notably, HDFC Bank, SBI, and IDBI Bank realised significant returns from their stake sales in the IPO.
- HDFC Bank sold 20 lakh shares at ₹800, earning ₹161 crore — a 7x return on its acquisition cost of ₹106.29 per share.
- SBI sold 40 lakh shares and earned ₹320 crore, translating into a 400x return on its ₹2 per share acquisition price.
- IDBI Bank offloaded 2.2 crore shares and earned ₹1,778 crore, securing a 400x return based on its acquisition cost.
NSDL’s Business and Revenue Model
NSDL is India’s first and largest securities depository, responsible for maintaining and safeguarding investors’ demat holdings including equities, bonds, and mutual funds.
Its revenue streams include:
- Annual fees from depository participants
- Custody and registration charges from issuers
- Transaction fees for corporate clients and intermediaries
- Software licensing and communication service charges
The company also manages a wide array of services through its subsidiaries — NSDL Database Management Ltd. (focused on e-governance and digital onboarding) and NSDL Payments Bank Ltd., which offers digital banking and prepaid card solutions.
Financial Highlights and Valuation
In FY25, NSDL reported:
- Revenue of ₹1,420 crore
- Net profit of ₹343 crore
- Operating profit margin of 26.4%
- Revenue CAGR of 18% over FY23–FY25
- Net profit CAGR of 21% during the same period
At the highest end of the price range, NSDL’s price-to-earnings (P/E) ratio was set at 47x, which is lower than CDSL’s P/E ratio of 61x. Its market capitalisation post-listing stands close to ₹16,000 crore.
Key Strengths and Future Outlook
NSDL’s core strengths include:
- A robust tech infrastructure and strong cybersecurity protocols
- A diversified product suite and revenue base
- Long-standing institutional relationships
- Innovation in digital services and product expansion
Going forward, NSDL aims to deepen its market reach and modernise its IT infrastructure to further improve operational efficiency and service delivery. It also plans to enhance its offerings in the payments banking segment and expand its role in digital financial services.
Conclusion
NSDL’s listing at a premium and its continued momentum highlight the strong market confidence in India’s leading securities depository. With a technology-first approach, consistent financial performance, and a solid track record, NSDL is poised to play a pivotal role in shaping the future of India’s digital financial infrastructure.
If you are exploring more investment opportunities, check out our dedicated page on upcoming IPO listings to stay updated on the latest market offerings.
