NSDL’s RS 4,012 Crore IPO opens for subscription. Do you have to apply?

The IPO of National Securities Depository LTD (NSDL), the first and largest custodian in India, was opened for subscription on Wednesday. The problem problem is entirely an offer for sale (OFS) worth RS 4,012 Crore by existing shareholders, without new capital being supplied.

The IPO consists of 5.01 shares of Crore Equity and will close on 1 August. Investors can offer at least 18 shares and then in multiples. NSDL is mentioned on BSE, probably stating on August 6.

NSDL IPO Price Band and GMP

The price band for the IPO was set at RS 760 to RS 800 per share, and the Gray Market Premium (GMP) was 16% for the opening.

About business

NSDL is an important institution for market infrastructure and the first depositor to start in India in India after the Depositions Act, 1996.

The company offers deposits for asset classes, including shares, debts, investment funds, reit’s, invites, AIFs and more. The network comprises more than 99% of the pin codes in India, and the customer base includes 186 countries. The keeper works on a robust annuity-like income model through annual issue and costs based on transactions.

NSDL IPO: Financial and appreciation

In FY25, NSDL achieved the turnover of RS 1,420 Crore, an increase of 12% compared to the previous year, while profit after the tax on 25% rose to RS 343 Crore. The EBITDA margin was 34.71%, which reflects strong operational efficiency.

The company has also diversified its income flows through subsidiaries such as NSDL Database Management LTD (NDML) and NSDL Payments Bank LTD (NPBL), venture into e-government, regulations platforms and digital banking.

When appreciation, NSDL is priced on a p/e of 46.62x and a p/b of 7.98x based on FY25 income. While its Peer Central Depository Services (India) LTD (CDSL) acts on a higher p/e of 60.43 times and p/b of 18.08x, NSDL recommends a larger proportion of dematactiva and broader service infrastructure.

Do you have to subscribe?

Brokers have largely recommended a ‘subscribe’ rating of the NSDL IPO for long -term investors. Anand Rathi and Canara Bank Securities mention the almost monopolic scale of NSDL in the Deposito ecosystem, healthy financial data, broad product coverage and strategic relevance for the infrastructure of the Indian capital market as important positives.

((Indemnification: Recommendations, suggestions, views and opinions of the experts are their own. These do not represent the views of economic times)