The NSDL IPO is undeniably one of the most anticipated issues this year. As the SEBI deadline for listing looms closer, the big question is when NSDL will launch the issue? A recent Bloomberg report indicated that NSDL may start taking investors’ orders for its Initial Public Offer (IPO) from this week. However, there is no official word on the date yet. The only date that we know with certainty is the SEBI deadline for listing—July 31, 2025.
NSDL IPO: What’s the buzz in the unlisted share price
The NSDL IPO size has been reduced to Rs 3,000-3,400 crore issue as per the latest addendum filed to SEBI by the Depository. The big question is what could be the potential issue price. NSDL’s unlisted share prices are trading around Rs 1,025 per share. This is down significantly from its 52-week highs in the unlisted share space. Prices have fallen nearly 18-20% after the issue price for the HDB Financial Services IPO was announced.
The HDB Financial Services IPO, which was also trading around Rs 1,250 per share in the unlisted space, was priced at Rs 740 a share. The shares finally listed at a 13% premium to the issue price at Rs 835 per share.
This is one of the big reasons why the NSDL share price in the unlisted space has fallen from Rs 1,200+ levels to Rs 1,025 per share. There is apprehension that investors may face a notional loss when the issue price is finally announced.
The whispers and the market buzz indicate the likelihood of an issue price being fixed in the vicinity of the Rs 800 per share level.
NSDL IPO: How do the valuations stack up Vs CDSL?
If one compares the valuation of the NSDL shares to other peer stocks in the listed space, the closest comparison would be with CDSL. The CDSL shares are trading at a price-to-earnings ratio of 67. This essentially indicates that investors may pay 67x the company’s earnings for every CDSL share. This high PE ratio is also an indicator of the company’s future growth prospects.
Meanwhile, based on the unlisted share price trends and the overall financial metrics of NSDL, its price-to-earnings ratio is hovering closer to the 60 mark. However, this is only an indicative price and not an official metric. The absolute PE can be calculated only after the IPO pricing is announced.
NSDL‘s FY25 profit stands at Rs 343 crore, and the revenue came in at Rs 1,420 crore. CDSL in the same fiscal year clocked a profit of Rs 526 crore and revenue of Rs 1,082 crore.
NSDL IPO: Issue purely an offer for sale
Another important aspect that investors should keep in mind is that the NSDL issue is a pure offer for sale. No fresh capital is being raised through this issue. The proceeds of the IPO will not benefit NSDL; rather, they will go to the key stakeholders who are diluting shares. This share sale is primarily done to comply with SEBI’s ownership cap at 15% for all MIIs or Market Infrastructure Institutions.
The companies that would be diluting stake via this OFS include NSE, IDBI Bank, HDFC Bank, SBI, Union Bank of India, and SUUTI.
Nearly 5.02 crore shares are on offer. This is actually less than what was on offer in the original DRHP in 2023. It was earlier 5.73 crore shares. However, given the market conditions and investor sentiments, some of the stakeholders have reduced the net shares on offer.