By Krishna Dua 
NSDL Stock & IPO Launch: Price Band ₹760‑800, GMP at ₹135‑₹140
Mumbai, India – July 30, 2025 – National Securities Depository Limited (NSDL), India’s oldest and largest depository, has today opened its highly anticipated Initial Public Offering (IPO) for public subscription. The IPO, entirely an Offer for Sale (OFS) by existing shareholders, is set to raise ₹4,011.60 crore. With a price band fixed at ₹760 to ₹800 per equity share, the issue has garnered significant attention, particularly due to its attractive Grey Market Premium (GMP), which indicates a potential listing gain for investors.
IPO Details: Price Band, Issue Size, and Key Dates
The NSDL IPO is a book-built issue of ₹4,011.60 crores, comprising 5,01,45,001 equity shares. Notably, this is a pure Offer for Sale, meaning the company will not receive any proceeds from the issue; the funds will go to the selling shareholders.
- IPO Open Date: July 30, 2025 (Today)
- IPO Close Date: August 1, 2025
- Price Band: ₹760 to ₹800 per equity share
- Face Value: ₹2 per share
- Lot Size: 18 shares (Retail investors can bid for a minimum of 1 lot, amounting to ₹14,400 at the upper price band)
- Listing At: BSE (Tentative listing date: August 6, 2025)
The major shareholders offloading their stakes include IDBI Bank (selling up to 2.22 crore shares), National Stock Exchange (NSE) (up to 1.8 crore shares), SBI (up to 40 lakh shares), HDFC Bank (up to 20.1 lakh shares), and Union Bank of India (up to 5 lakh shares), among others.
Grey Market Premium (GMP) Signals Positive Sentiment
The Grey Market Premium (GMP) for NSDL shares has been a key indicator of investor sentiment. As of July 30, 2025, the NSDL IPO GMP stands at approximately ₹135 to ₹140 per share. At the upper end of the price band (₹800), this suggests an estimated listing price of around ₹935 to ₹940, indicating a potential listing gain of approximately 17% to 17.5%.
This premium reflects a robust demand in the unlisted market, especially considering the IPO’s pricing is at a discount to NSDL’s recent unlisted share price, which had peaked at around ₹1,275 in June 2025. This conservative pricing strategy by NSDL appears to be designed to offer value to investors and ensure a positive listing.
Anchor Investor Response: A Strong Start
The anchor book, which opened for bidding on July 29, 2025, saw a strong response from institutional investors. NSDL successfully raised ₹1,201.44 crore from anchor investors by allocating 15,017,999 equity shares at the upper price band of ₹800 per share.
The anchor book witnessed participation from 61 entities, including a mix of domestic and global mutual funds, insurance firms, pension funds, and sovereign investors. Notable allocations included Life Insurance Corporation of India (LIC) and various mutual funds, signaling strong institutional confidence in NSDL’s long-term growth prospects and stable business model.
Day 1 Subscription Status: A Promising Start
On Day 1 of the IPO, July 30, 2025, the NSDL IPO has seen a promising start. As of early afternoon trading, the issue was subscribed approximately 26% overall.
- Retail Individual Investors (RIIs): The retail portion has shown significant interest, being fully subscribed or nearly fully subscribed in the initial hours.
- Non-Institutional Investors (NIIs): The NII segment has also seen healthy demand.
- Qualified Institutional Buyers (QIBs): While initial QIB subscription might appear slower, institutional interest typically picks up on the later days of the IPO.
The strong initial subscription, particularly from retail investors, indicates a positive reception for NSDL’s public offering.
NSDL vs. CDSL: A Depository Duopoly
NSDL operates in a duopolistic market alongside Central Depository Services (India) Limited (CDSL). While both play crucial roles in India’s securities market infrastructure, they have distinct strengths:
- Market Share by Value: NSDL holds a dominant position in terms of the value of dematerialized securities, commanding approximately 66.03% market share in dematerialized share settlements and managing over ₹464 lakh crore in assets under custody as of March 2025. This is largely due to its focus on high-value institutional clients, including foreign portfolio investors (FPIs), custodians, and mutual funds.
- Market Share by Accounts: CDSL, on the other hand, leads in the total number of demat accounts, primarily catering to retail investors. As of March 2025, CDSL had around 15.3 crore demat accounts compared to NSDL’s 3.94 crore.
- Financial Performance (FY25):
- Revenue: NSDL reported revenue from operations of ₹1,420.15 crore, a 12% increase year-on-year.
- Profit After Tax (PAT): NSDL’s PAT grew by 25% year-on-year to ₹343.12 crore.
- Valuation: NSDL’s IPO is priced at a Price-to-Earnings (P/E) ratio of approximately 46.6x based on FY25 earnings, which is noticeably cheaper compared to CDSL, which trades at a higher P/E of around 65x. This valuation gap is attributed to NSDL’s diversified revenue streams (including e-governance and payments bank subsidiaries) and its institutional focus, while CDSL benefits from a leaner, retail-driven, and highly scalable model.
Analysts largely recommend a ‘Subscribe’ rating for the NSDL IPO, particularly for long-term investors, citing NSDL’s near-monopoly status in the depository ecosystem, robust financials, comprehensive product coverage, and strategic importance to India’s capital market infrastructure.
Conclusion
The NSDL IPO represents a significant opportunity for investors to participate in India’s growing capital market infrastructure. With a well-defined price band, strong anchor investor interest, and a positive GMP, the issue is poised for a favorable listing. While it operates in a competitive landscape with CDSL, NSDL’s dominant position in institutional assets and its diversified business model present a compelling investment case for those looking for long-term exposure to the financialization of savings in India. Investors are advised to conduct their own due diligence and consult financial advisors before making investment decisions.
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