Highlights: Last chance to apply for NSDL IPO; GMP up 17% on Day 3 – Here’s all you need to know

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As of Day 2 of bidding, the NSDL IPO is seeing a steady flow of investor interest, with an overall subscription of 1.32 times so far. Retail investors portion subscribed 1.29 times, while the non-institutional investor (NII) portion is subscribed 2.22 times. However, demand from qualified institutional buyers (QIBs) remains relatively muted so far, at just 0.71 times.

Developed security markets including the US, Europe, and Singapore remain key financial hubs, but emerging markets like India, China, and Brazil are progressively attracting greater investor attention driven by robust economic growth prospects and expanding middle-class demographics. After, COID-19, India has witnessed a strong upsurge in its security market activities, driven by higher retail participation and robust economic growth.

“At the upper price band of Rs 800, NSDL’s FY25 P/E ratio of 47x appears reasonably priced compared to its peer. Considering its dominant share in AUC, rapid growth in financials, stable revenue stream, healthy return ratios and focus on digital infrastructure expansions ahead, we assign a ‘Subscribe’ rating with a long-term investment perspective,” said Geojit Investments in its IPO note.

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

“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.

“We assign a “SUBSCRIBE” rating to its initial issue,” noted the report.

As of March 2025, the company had a network of 65,391 depository participants’ service centres as compared to 18,918 such centres with CDSL. As a depository, it provides a robust depository framework that enables market participants to participate in the financial and securities markets in India.

As per the latest trend, the company’s shares are trading at a premium of Rs 135 in the grey market, indicating a potential listing price of around Rs 935, about 17% higher than the issue’s upper price band of Rs 800.

However, investors should note that this is not the official listing price, and actual gains may vary depending on market sentiment at the time of listing.

The entire shareholding of the company is held by the public shareholders, meaning that 100% of the company’s equity is owned by individuals and institutional investors who are not part of the Promoter or Promoter Group. As a result, the company operates without any promoter holding, reflecting a fully public-owned structure.

The IPO of NSDL was subscribed to a total of 0.78 times on the first day of its bidding. The retail portion was booked 0.84 times, while the NII was booked 1.32 times. The QIB section was subscribed to 0.26 times. The employee portion saw the highest interest on Day 01, getting booked 1.83 times.

The minimum investment for a retail investor is Rs 13,680 for 18 shares. For non-institutional investors, the minimum bid for small NIIs (sNII) is 14 lots or 252 shares, totaling Rs 2,01,600. For big NIIs (bNII), the minimum is 70 lots or 1,260 shares, amounting to Rs 10,08,000.

The latest Grey Market Premium (GMP) for the NSDL IPO stands at Rs 132, as of July 30, 2025, 8:01 PM. With a price band capped at Rs 800, the IPO’s estimated listing price is around Rs 932. This suggests a potential gain of 16.50% per share on listing.

As of 5:04 PM on July 30, 2025 (Day 1), NSDL IPO was subscribed 0.78 times overall. The public issue saw a subscription of 0.84 times in the retail category, 0.26 times in the QIB segment, and 1.32 times in the NII category.

NSDL IPO price band is set at Rs 760 to Rs 800 per share. The lot size for the application is 18.

Founded in 1996, NSDL was the first depository to introduce electronic holding and settlement of securities in India. It currently manages over 4 crore demat accounts and handles assets worth more than Rs 510 lakh crore. The company operates through a nationwide network of more than 66,000 service centres.

NSDL IPO’s latest GMP stands at Rs 135, as of July 30, 2025, 5:00 PM.
With a price band of Rs 800, the estimated listing price is Rs 935 (cap price + today’s GMP). This suggests a potential gain of 16.88% per share on listing.

The key objective of the issue is to facilitate the listing of NSDL shares on a stock exchange and ensure regulatory compliance. SEBI mandates a minimum public shareholding in market infrastructure institutions, which this IPO aims to meet. There is no plan to use the IPO proceeds for funding growth or operations.

With a price band of Rs 800, NSDL IPO’s estimated listing price is Rs 940 (cap price + today’s GMP). The expected percentage gain per share is 17.50%.

Established in 1996, NSDL was the first depository to introduce electronic holding and settlement of securities in India. It currently manages over 4 crore demat accounts and handles assets worth more than Rs 510 lakh crore. The company operates through a nationwide network of more than 66,000 service centres.

According to a CRISIL report, the capital markets have played a pivotal role in development of the Indian economy with the amount of total capital raised (equity and debt) increasing from Rs 91,950 crore in Financial Year 2019 to Rs 21,8120 crore in Financial Year 2025.

The key objective of the issue is to facilitate the listing of NSDL shares on a stock exchange and ensure regulatory compliance. SEBI mandates a minimum public shareholding in market infrastructure institutions, which this IPO aims to meet. There is no plan to use the IPO proceeds for funding growth or operations.

“At the upper price band of Rs 800, NSDL’s FY25 P/E ratio of 47x appears reasonably priced compared to its peer. Considering its dominant share in AUC, rapid growth in financials, stable revenue stream, healthy return ratios and focus on digital infrastructure expansions ahead, we assign a ‘Subscribe’ rating with a long-term investment perspective,” said Geojit Investments in an IPO note.

The Rs 4,011 crore IPO of NSDL fully subscribed within just three hours of opening for bidding. Retail investors, non-institutional buyers, and NSDL employees led the initial rush, filling up their respective quotas early in the day. Meanwhile, the institutional investor segment was off to a steady start, with around 50% of its portion subscribed by the afternoon.

The IPO of NSDL opened for subscription today. As of now, the issue was subscribed 0.43 times overall. The retail portion attracted the most attention, getting subscribed 0.54 times, followed by the Non-Institutional Investor (NII) category at 0.72 times. However, the Qualified Institutional Buyers (QIB) segment saw minimal interest, with a subscription of just 0.01 times.

NSDL operates a centralised digital book-keeping system that facilitates the holders of securities to hold and transfer their securities in electronic form and enables settlement solutions in an efficient and cost-effective manner. It also facilitates and maintains complete records of the ownership of securities held in dematerialised form with it on behalf of the issuer entity.

The number of active demat accounts with NSDL has grown at a 13.5% CAGR over FY19-25 to reach 39.5 million. Notably, despite a lower number of active accounts, NSDL commands an impressive 66% market share in settlement value, with total assets in its custody amounting to Rs 464 lakh crore.

In FY25, NSDL reported a 12% rise in revenue, reaching Rs 1,420 crore, while net profit grew by 24.5% to Rs 343 crore. The company has maintained an EBITDA margin of around 32–34%, and its average return on net worth (RoNW) stands at about 16.75% over the last three years.

“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 consolidated basis) posted a total income/net profit, of Rs 1099.81 cr/ 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 company 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 the brokerage firm Bajaj Broking in its report.

Major stakeholders participating in the OFS include IDBI Bank, State Bank of India, National Stock Exchange, HDFC Bank, Union Bank of India, and the Administrator of Unit Trust of India. These divestments align with SEBI’s shareholding norms for market infrastructure institutions.

NSDL’s revenue and net profit grew consistently at 17.9% and 20.9% CAGR over FY23-25, led by a continuous increase in the number of active demat accounts and higher trading activity across its accounts, along with diversification into other ancillary investor services.

“Its revenue and net profit grew consistently at 17.9% and 20.9% CAGR over FY23-25, led by continous increase in number of active demat accounts and higher trading activity across its account, along with diversification into other ancillary investor services,” said Deven Choksey Research in its IPO note.

“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,” added the brokerage firm.

“We assign a “SUBSCRIBE” rating to its initial issue,” it added.