NSDL IPO opens: Analysts upbeat on fair valuation; should you subscribe?

Market analysts have broadly shared positive views on the public issue of NSDL, citing its fair valuation compared to its only listed rival, Central Depository Services (India) Limited (CDSL)

NSDL IPO opens for subscritpion today:  Brokerages remain upbeat about the much-awaited initial public offering (IPO) of India’s largest depository, National Securities Depository Limited (NSDL), which opens for public subscription today. Market analysts have broadly shared positive views on the public issue, citing its fair valuation compared to its only listed rival, Central Depository Services (India) Limited (CDSL), and believe the company is well-positioned for long-term growth prospects.

 

Notably, the NSDL IPO comprises an Offer for Sale (OFS) of 50.14 million equity shares, aggregating up to ₹4,011.60 crore, with no fresh capital being raised by the company. The shareholders participating in the OFS include IDBI Bank, National Stock Exchange (NSE), HDFC Bank, State Bank of India (SBI), Union Bank of India, and the Administrator of the Specified Undertaking of the Unit Trust of India (SUUTI).

 

 

The depository has already raised ₹1,201 crore from anchor investors during the bidding concluded on July 29.

 

The NSDL IPO is being offered at a price band of ₹760 to ₹800 per share with a lot size of 18 shares. Thus, investors can bid for a minimum of 18 shares and in multiples thereof. A retail investor would require a minimum of ₹14,400 to bid for one lot (18 shares) of NSDL, and ₹1,87,200 to bid for a maximum of 13 lots (234 shares).

 

That said, since the public issue is an Offer for Sale, NSDL will not receive any proceeds from it. Instead, the funds will go to the existing shareholders, who are divesting part of their stakes.  ALSO READ | NSDL IPO vs CDSL shares: Here's what key numbers reveal for investors

Here’s what the brokerages have said about the NSDL IPO:

Anand Rathi Research – Subscribe

Analysts at Anand Rathi Research have recommended subscribing to the public issue of NSDL, citing its fair pricing. NSDL, analysts believe, will maintain its focus on unlocking growth opportunities and deepening market reach by utilizing its core competencies.

 

"The company plans to strengthen and modernize its IT infrastructure to improve operational efficiency, elevate service standards, and bolster resilience. Additionally, it aims to broaden its range of services, enhance its database management capabilities, and expand the market share of its payments bank division," wrote the analysts in their report.

 

"At the upper price band, the company is valuing at a P/E of 46.6x to its FY25 earnings, with a market cap of ₹16,000 crore and a return on net worth of 17.1 per cent post-issue of equity shares. We believe that the IPO is fairly priced and recommend a 'Subscribe' rating for the IPO."  ALSO READ | Sell CDSL shares to invest in the NSDL IPO? Here's what analysts recommend

Canara Bank Securities – Subscribe

Brokerage firm Canara Bank Securities has also assigned a 'Subscribe' rating to the NSDL IPO with a medium- to long-term investment horizon and said that the company is well-positioned for long-term growth.

 

"NSDL forms a critical backbone of India’s capital market infrastructure with wide network penetration and regulatory significance. Its annuity-like revenue model, diversified service suite, and leadership in depository operations offer scalability and resilience," said the brokerage in its report.

 

The IPO's pricing, the brokerage said, appears attractive compared to CDSL’s P/E of 60.43x and P/B of 18.08x, especially considering NSDL’s superior assets under custody and service reach. With rising demat penetration and increasing financialization of the economy, NSDL is expected to benefit from long-term trends.

Angel One – Subscribe for long-term

Analysts at Angel One have recommended investors to subscribe for a long-term investment perspective. The analysts highlighted that at the upper price band of ₹800, NSDL is valued at a post-issue P/E of 47× FY25 earnings, which is lower than its listed peer, CDSL.

 

"Given its strong market position, high entry barriers, and long-term growth tailwinds from India’s digital and capital market expansion, we assign a ‘Subscribe’ rating for long-term investors," wrote the analysts in their report.  ALSO READ | NSDL's ₹4,011-cr IPO opens today, July 30: Key risks, strengths you must know

Equinomics – Subscribe for listing gains

Those at Equinomics have recommended that investors consider subscribing to the NSDL IPO for possible tactical listing gains. "CDSL looks superior to NSDL in terms of growth profile. However, the NSDL IPO may give some tactical gains on listing as it has a considerable discount to CDSL on IPO issue price at the upper band," wrote the analysts at Equinomics in their research report.

About National Securities Depository

 

National Securities Depository Ltd is a SEBI-registered market infrastructure institution (“MII”) offering a wide range of products and services to the financial and securities markets in India. Following the introduction of the Depositories Act in 1996, through their company, they pioneered the dematerialization of securities in India in November 1996. As of March 31, 2025, they are the largest depository in India in terms of number of issuers, number of active instruments, market share in demat value of settlement volume, and value of assets held under custody