Highlights: NSDL listing tomorrow

“NSDL is engaged as a pioneer in depository services in India and is an ice breaker for the demat process. The company is expanding its horizon with more value-added services and options. On the financial performance front, for the last three fiscals, the company has (on a basis) posted a total income/net profit, of Rs. 1099.81 cr. consolidated/ Rs. 234.81 cr. (FY23), Rs. 1365.71 cr. / Rs. 275.45 cr. (FY24), Rs. 1535.19 cr. / Rs. 343.12 cr. (FY25). For the last three fiscals, the compa has posted an average EPS of Rs. 15.13 and an average RoNW of 16.75%. If we attribute FY25 annualized earnings then the asking price is at a P/E of 46.62. Based on FY24 earnings, the P/E stands at 58.10,” said Bajaj Broking in the IPO note.

It earns revenue from custody fees, transaction charges on debit transactions, demat annual maintenance fees, registration fees, and software licenses. As of March 2025, it had 39.5 million active demat accounts and served over 79,000 issuers, including 73,000+ unlisted companies.

Financially, its net worth increased from Rs 1,428 crore in 2023 to Rs 2,005 crore in 2025, and its revenue grew to Rs 1,420 crore during the same period. The company is debt-free and reported a net profit of Rs 343 crore in FY25.

The reason for the IPO was not to raise fresh capital but to comply with SEBI rules, which prevent any single entity from owning more than 15% in a depository. To follow this rule, existing institutional shareholders had to sell part of their holdings to the public through this IPO.

NSDL was set up in 1996 and is known for introducing dematerialisation (demat) in India, basically converting physical shares into electronic form. As of March 2025, the company managed over 38.7 million active demat accounts and had assets worth more than Rs 77.8 lakh crore under custody. It has investors from more than 218 countries.

The company plays a key role in India’s stock market. It allows investors to hold and transfer shares electronically, which makes trading safer and faster. NSDL also supports services like share settlements, corporate actions (like dividends or bonus issues), and KYC updates.

NSDL’s core depository services provide it with a steady source of recurring revenue, primarily through annual custody fees that it charges issuers of securities and annual maintenance fees it charges depository participants in relation to corporate accounts serviced through its depository platform.

Investors who applied for the NSDL IPO can easily check their allotment status online through the official registrar’s website – MUFG Intime India (formerly Link Intime). Here’s how you can do it-

– Visit the MUFG Intime website

– Click on the ‘IPO Allotment Status’ section.

– From the list of recent IPOs, select ‘NSDL’.

– Choose how you want to search – using your PAN number, Application Number, or DP Client ID.

– Enter the selected details accurately and click ‘Submit’.

– The screen will display whether or not you have been allotted shares.

Read more: Why has NSDL IPO GMP dropped? The 3 big investor concerns revealed

The total size of the NSDL IPO is around Rs 4,011.60 crore, with the price band set between Rs 760 and Rs 800 per share. Employees applying in the IPO were given a discount of Rs 76 per share, offering them shares at a much lower rate than general investors.

Retail investors could apply in lots of 18 shares, requiring a minimum investment of Rs 14,400 at the upper price band. They could apply for up to 13 lots, which amounts to 234 shares for Rs 1,87,200. For high-net-worth individuals and institutional investors, different application limits applied, based on SEBI rules.

NSDL IPO investors are now waiting to see if the allotment bell rings in their favour After the three day bidding process. The IPO, which closed on August 1, received a strong response across all investor categories. You can check the allotment status via the BSE Website by following the steps below.

– Head to the BSE Website

– Select ‘Equity’ as the issue type

– Choose NSDL IPO from the list

– Enter your application number and PAN

– Verify the captcha and click Search

Read more: How to check online and 3 mistakes to avoid

This IPO is not about raising fresh funds for NSDL’s operations. Instead, it is a pure Offer for Sale (OFS), meaning all 5.01 crore shares are being sold by existing investors such as IDBI Bank, NSE, HDFC Bank, SBI, and Union Bank of India. This means NSDL itself will not receive any proceeds from this public offer.

Because no new shares are being issued, the aim of this IPO is mainly to meet regulatory requirements and give early investors a chance to exit or reduce their holdings.

“The NSDL IPO witnessed overwhelming demand across all investor categories, with an overall subscription of 33.14x, led by strong institutional (QIB: 77.33x) and HNI (NII: 34.57x) interest, indicating robust confidence in the company’s fundamentals and long-term prospects,” said Gaurav Garg, analyst at Lemonn Markets Desk.

The Initial Public Offering (IPO) of National Securities Depository Limited (NSDL) was open for investors between July 30 and August 1,. During this time, investors could place their bids to own a stake in India’s largest depository. The share allotment is expected to be finalised today, August 4, while refunds for unallotted shares were processed on August 5. On the same day, eligible investors received their shares in their demat accounts.

Now, all eyes are on the listing, which is scheduled for August 6. These dates are important for investors tracking the timeline of their application or planning a quick trade on the listing day.

As per the latest grey market trends, NSDL shares are trading at a premium of Rs 120 over the issue price. This suggests a likely listing price of around Rs 920 per share, nearly 15% higher than the IPO’s upper price band of Rs 800.

However, it is important to note that this is not the actual listing price and may fluctuate based on market sentiment.

“We find value in the NSDL’s initial issue, which is priced at 46.6x TTM P/E, compared to listed peer valuation of 64.1x TTM P/E, as we believe the Company will perform better over the upcoming 3-5 years, driven by its higher focus on driving growth in retail demat accounts, through expanding relations with discount and new-age depository participants across underserved regions,” said Deven Choksey research in its IPO note.

National Securities Depository Limited, or NSDL, plays a key role in India’s financial infrastructure. Registered with SEBI, it operates as a market infrastructure institution, handling the electronic securities. As of March 31, 2025, it holds the top spot in India when it comes to the number of issuers, active instruments, and value of assets under custody. It also leads in terms of demat market share and settlement volumes, as per data from a CRISIL report.

Beyond its demat services, through its subsidiaries, NDML and NPBL it offers a wide range of technology driven services. These include platforms for KYC processing, insurance repository systems, and e-governance tools that serve both private and government clients.

Its reach extends into digital banking and payments as well.