The long‑anticipated NSDL IPO is inching closer, but activity in the grey market tells a different story. Since peer HDB Financial Services made its Dalal Street debut, the unlisted price of National Securities Depository (NSDL) has fallen sharply. Here is a detailed look at what has happened, why it matters, and how the IPO landscape has shifted.
NSDL IPO: Grey market chill after HDB Financial’s debut
Unlisted NSDL shares, which once changed hands at around Rs 1,275, are now quoted near Rs 1,035, a slide of roughly 19% from the peak and 6% in the most recent session and over 17% over the past month.
The unlisted share price of the company has seen a sharp correction in recent weeks. The share price of the company plunged nearly 6% in a single day. This drop in the share price of the company follows after the listing of HDB Financial Services, another IPO, which appears to have cooled investor enthusiasm in the grey market for NSDL’s upcoming public issue.
Grey‑market pricing is unofficial, and may fluctuate depending upon the market condition.
NSDL IPO: Details of the issue
As of now, NSDL is yet to confirm an official date of its IPO opening but multiple reports suggest that the issue is likely to raise around $400 million which is around Rs 3,300 crore).
The company already received SEBI approval for its Draft Red Herring Prospectus (DRHP) on September 30, 2024.
In a latest update, NSDL filed an addendum to the DRHP, revising the offer size to 50.15 million shares. This is down from the earlier 57.26 million. The issue will be listed on both the stock exchanges – NSE, BSE. ICICI Securities is the lead manager for the IPO, while MUFG Intime India (Link Intime) will serve as the registrar.
NSDL IPO: Core Business and Operations
The company was founded in 2012 and has been active in the depository space since 1996. Furthermore, it was among the first global players to implement dematerialisation directly.
It also plays a major role facilitating the electronic settlement of trade. Also, it provides back end infrastructure for the Indian stock market. Its services support depository participants, investors, brokers, and custodians across the ecosystem.
NSDL financial performance
Talking of the financial performance of the company, in FY24, the company posted a total revenue of Rs 1,268.24 crore, with around 37.3% coming from depository services. In comparison to FY23, the total revenue of the company stood at Rs 1,021.93 crore, with 40% attributed to the same stream.
The company has also paid a dividend of Rs 20 crore annually for the past three years. Dividend payout ratios, however, have gradually declined from 9.4% in FY22 to 7.26% in FY24, and 6.3% for the first nine months of FY25. Additionally, in FY23, NSDL approved a stock split, reducing the face value of each equity share from Rs 10 to Rs 2.
NSDL Payments Bank: A growing subsidiary
The company also operates NSDL Payments Bank (NPBL), which began commercial operations in October 2018. This subsidiary focuses on financial inclusion. This targets underbanked populations in remote areas through a business-to-business (B2B) model.
NPBL has gradually become a key contributor to NSDL’s overall revenue. As of now, NSDL holds 100% ownership and voting rights in NPBL.