The initial public offering (IPO) of National Securities Depository Limited (NSDL) closes today, August 1, 2025. The IPO has seen considerable interest, with the issue subscribed 5.04 times on Day 2. The price band for the IPO has been fixed at ₹760 to ₹800 per equity share. Investors can apply in lots, with one lot comprising 18 company shares.
Subscription Status
By the end of the second day, the IPO was subscribed 5.03 times. The retail portion was subscribed 4.17 times, while the Non-Institutional Investors (NII) portion was booked 11.08 times. Qualified Institutional Buyers (QIBs) bid for 1.96 times their designated portion, and the employee portion was booked 7.69 times.
Grey Market Premium (GMP)
Market observers reported that NSDL shares are trading at a premium in the grey market. The Grey Market Premium (GMP) for NSDL IPO is ₹126. The GMP signals listing gain potential in this OFS. According to experts, the estimated listing price is ₹926, a 15.75% gain per share over the upper price band.
IPO Details
The NSDL IPO is a book-building issue of ₹4,011.60 crores, consisting entirely of an offer for sale of 5.01 crore shares. The company will not receive any proceeds from the OFS component; the funds will go to the selling shareholders. The IPO is proposed for listing on the NSE and BSE.
Financial Performance and Valuations
NSDL has demonstrated steady financial growth. Between FY23 and FY25, the company recorded a CAGR of 18% in operating revenue, 22% in EBITDA, and 21% in net profit. For the financial year ended FY25, NSDL reported revenue of ₹1,420 crore, a 12% year-on-year growth, while profit after tax (PAT) rose 25% YoY to ₹343 crore. The company's Return on Equity (RoE) was 17.11% in FY25. At the upper price band of ₹800, NSDL trades at a price-to-earnings (P/E) ratio of approximately 46.6 times based on FY25 earnings.
Should You Apply?
Analysts suggest considering several factors before applying to the NSDL IPO. NSDL's strengths include its dominant position in asset custody, steady growth, and robust return ratios. The company holds a strong position across diversified asset classes. NSDL has a well-diversified revenue mix with stable, annuity-like income streams and a largely fixed cost structure, resulting in high operating leverage and strong margins.
However, potential investors should also be aware of the risks. NSDL has received regulatory warnings related to compliance and technical issues. Its payments bank business contributes a significant portion of revenue but operates at a low operating profit margin. NSDL's revenue is heavily dependent on market activity.
Several brokerage firms have recommended subscribing to the NSDL IPO, citing its market position and growth potential. NSDL's technological advancements are also highlighted.
