NSDL's ₹4,011-cr IPO opens on July 30: Key risks, strengths you must know

National Securities Depository (NSDL) IPO will open for bidding on Wednesday, July 30 and close on Friday, August 1, 2025

National Securities Depository IPO: The initial public offering of securities depository, National Securities Depository (NSDL), will open for bidding on Wednesday, July 30, 2025. The public issue worth ₹4,011.5 crore comprises an offer for sale (OFS) of 50.14 million equity shares, with no fresh issuance. IDBI Bank, National Stock Exchange of India, State Bank of India, Unit Trust of India, HDFC Bank, and Union Bank of India are the selling shareholders.  

 

The three-day subscription window is scheduled to close on Friday, August 1, 2025. NSDL IPO is available at a price band of ₹760-800 per share, with a lot size of 18 shares. 

 

MUFG Intime India is the registrar for the issue. ICICI Securities, Axis Capital, HSBC Securities & Capital Markets (India), IDBI Capital Markets & Securities, Motilal Oswal Investment Advisors, and SBI Capital Markets are the book-running lead managers.

Here are the key strengths of NSDL, as outlined in the RHP:

India's first and leading depository: NSDL is India's first and largest depository in terms of the number of issuers, the number of active instruments, market share in demat value of settlement volume and value of assets held under custody as of March 31, 2025. Its core depository platform serves 9,73 issues and over 3.95 crore active demat accounts. It has an extensive network of 294 Depository Participants (DPs) across 65,392 service centres, significantly ahead of its key competitor, CDSL.

 

Strong focus on technology-led product innovation: The company has consistently invested in technology, enabling the

development of a state-of-the-art depository system catering to diverse user groups such as depository participants,

issuers, registrars, transfer agents, and clearing corporations. In August 2007, NSDL was the first depository to

introduce instant messaging alerts (over SMS) to investors. It has a wide range of value-added services, including Speed-e, STeADY, and IDeAS. 

 

Strong subsidiary performance: NSDL has diversified its offerings by developing complementary verticals through its subsidiaries. NSDL Database Management (NDML) serves as a technology-focused service provider, offering support to approximately 1,728 intermediaries registered with Sebi. It also oversees around 1.9 crore KYC records through its license to operate the Central KYC Registry (CKYCR). On the other hand, NSDL Payments Bank (NPBL) provides a range of digital financial services such as prepaid cards, Direct Benefit Transfer (DBT)-linked accounts, and cash management solutions tailored for corporate and government clients, following a B2B2C approach. 

Here are the key risks associated with investing in NSDL:

Demand risk: According to the RHP, a shift in investor preference away from investing and trading in securities to other avenues could reduce demand for NSDL's services and adversely impact the business, financial condition and results of operation. 

 

Production evolution risk: The company relies on its ability to develop and launch new products and services to the securities market in India through technology-based solutions that anticipate and keep pace with rapid and continuing changes in technology, industry standards, and preferences of investors. Any failure to do so will adversely impact its business. 

 

Market risk: A majority of the company's business is transaction-based, in particular, delivery-based, and dependent on trading activity in the securities market. Any slowdown in trading activity due to external risks like geopolitical developments or global economic trends adversely affects NSDL's business, cash flows, results of operation and financial condition.

 

IT risk: The company is dependent on complex information technology networks and systems to operate its business. Any significant system or network disruption due to a technical glitch, breach in the security of our IT systems or otherwise, could have a negative impact on the business, reputation, and financial condition, including the levy of financial disincentive by the Securities and Exchange Board of India (Sebi).

 

Regulatory risk: NSDL operates under a strict regulatory environment. The company's inability to comply with legal and regulatory obligations may expose it to regulatory proceedings and legal actions by the Sebi.