NSDL IPO to open shortly for subscription; should you subscribe? Check GMP, price band, other key details

NSDL IPO to open shortly for subscription; should you subscribe? Check GMP, price band, other key details

NSDL IPO opens for public subscription today (July 30) and will close on Friday (August 1). The company has fixed the price band at Rs 760 to Rs 800 per equity share. At the upper end of the price band, the IPO is expected to raise Rs 4,011 crore, valuing the depository at approximately Rs 16,000 crore.

Post-listing, National Securities Depository Ltd (NSDL) will become the second publicly listed depository in the country after Central Depository Services (India) Ltd (CDSL), which made its debut on the stock exchanges in 2017.

NSDL IPO is entirely an offer for sale by existing shareholders, and no fresh issue of shares is involved.

NSDL IPO: Should you subscribe? 

Bajaj Broking has recommended a "Subscribe for Long Term" rating on the issue.

On the financial front, NSDL reported a total income and net profit of Rs 1,099.81 crore and Rs 234.81 crore in FY23, Rs 1,365.71 crore and Rs 275.45 crore in FY24, and Rs 1,535.19 crore and Rs 343.12 crore in FY25, respectively, on a consolidated basis. The average earnings per share (EPS) for the last three fiscals stood at Rs 15.13 with an average return on net worth (RoNW) of 16.75 percent.

Based on FY25 annualised earnings, the price-to-earnings (P/E) ratio works out to 46.62 times. On FY24 earnings, the P/E ratio is 58.10, the note added.

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NSDL IPO Key Risks

The analysts at Angel One highlighted certain risks associated with the offer. These include regulatory scrutiny on transaction pricing, competition from CDSL in the retail depository space, and revenue sensitivity to overall market activity. The brokerage also noted that as the IPO is a pure offer for sale, it does not provide additional growth capital to the company.

However, the analysts added that NSDL’s core depository services provide a stable source of recurring revenue, mainly from annual custody fees charged to issuers and annual maintenance fees from depository participants.

NSDL IPO GMP surges ahead of issue launch on July 30; check price band, issue size, other key details

NSDL IPO GMP Today News

Kalp Jain, Research Analyst at INVasset PMS, said investor sentiment remains positive, with a grey market premium of Rs 135–140 indicating potential listing gains of around 17 percent.

He added that while regulatory concerns and competition remain areas to watch, NSDL’s position as a market leader with predictable cash flows makes it suitable for long-term investors seeking exposure to the capital market infrastructure segment.

The company has announced that half of the issue size has been reserved for qualified institutional buyers, 35 percent for retail investors and the remaining 15 percent for non-institutional.

Investors can bid for a minimum lot size of 18 shares and in multiples of 18 thereafter. Investors are required to make a minimum investment of Rs 14,400 to avail one lot of shares.

Shares of NSDL will be listed on August 6 on the BSE, while the allotment of shares is expected on August 4 on the official registrar to the issue, Link Intime India Private Limited.

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