National Securities Depository Limited (NSDL), India’s first and largest depository by value of assets under custody, is launching its IPO. The offering is drawing strong interest due to several key strengths but also presents some concerns for investors.
National Securities Depository Ltd (NSDL) IPO
- Opening Date: Wednesday, July 30, 2025
- Closing Date: Friday, August 1, 2025
- Allotment Status Finalization: Expected today, Monday, August 4, 2025
- Listing Date: Wednesday, August 6, 2025
- Listing: BSE and NSE
Brokerage Recommendations
- Most brokerages are positive on the NSDL IPO due to its strong market position, reliable revenue, and attractive valuation.
- They note that NSDL is crucial to India’s financial system and offers steady returns.
- However, they also warn about growing competition from CDSL, continued losses in the payments bank, and regulatory risks.
- Best for long-term investors willing to accept some risk for stability and leadership.
Promoter Holding
- Before IPO: 92.58%
- After IPO: 76.7%
- (This fall is because the IPO is an Offer for Sale, so existing promoters are selling part of their stake.)
NSDL IPO: Strengths and Concerns
| Strengths | Concerns |
| Dominant Market Position: India’s first and largest depository by assets, critical infrastructure. | Competition from CDSL: CDSL leads in retail demat accounts and discount brokerage tie-ups. |
| Stable and Recurring Revenue: Major income from annual and custody fees; predictable cash flows. | Market Volatility Risk: Revenue partly depends on trading activity; slowdowns can affect earnings. |
| Healthy Financials: Debt-free, consistent revenue and profit growth, strong operational efficiency. | Payments Bank Losses: This division is loss-making, pulling down overall profitability. |
| Attractive Valuation: IPO priced lower (P/E) than peer CDSL, making it appealing for investors. | Regulatory & Cybersecurity Risks: Non-compliance or cyber breaches could cause serious financial/reputational impact. |
| Institutional Focus: Strong focus on large clients brings higher-value, more stable revenues. | Offer for Sale (OFS): IPO funds go to existing shareholders, not NSDL—no fresh capital for expansion. |
NSDL IPO: Pros and Cons
| Pros | Cons |
| Market Leader: Largest depository in India by assets. | CDSL Competition: CDSL dominates retail/fintech tie-ups, could limit NSDL’s growth. |
| Stable Revenue: Income from annual/custody fees is steady and recurring. | Payments Bank Loss: This segment continues to pull down profits. |
| Strong Financials: Consistent profit growth, debt-free, good returns. | Market Dependent: Income partly relies on trading activity. |
| Attractive Price: Lower valuation compared to peer (CDSL). | Regulatory/Cyber Risks: Heavy oversight and cyber threats are always a risk. |
| Institutional Focus: High-value accounts, less volatile income. | No Fund Inflow: IPO funds go to selling shareholders, not the company. |
Conclusion
The NSDL IPO offers investors a rare chance to invest in India’s largest and most critical depository, backed by strong financials, stable recurring revenues, and an attractive valuation compared to its peer. While the company’s institutional focus and market leadership are clear strengths, challenges such as stiff competition from CDSL, ongoing losses in the payments bank division, market dependency, and the lack of fresh capital from this Offer for Sale must be considered. Overall, the IPO is best suited for long-term investors who value stability and wish to participate in the growth of India’s financial infrastructure, but they should be mindful of the associated risks.
FAQs
1. What is NSDL?
Ans: India’s first and largest securities depository.
2. What makes NSDL IPO attractive?
Ans: Strong market position, stable revenue, healthy financials, and attractive valuation.
3. What are the main risks?
Ans: Competition from CDSL, payments bank losses, market dependency, regulatory and cyber risks, and no new funds for NSDL.
4. Will NSDL get money from this IPO?
Ans: No, all proceeds go to existing shareholders (OFS).
5. Who should invest?
Ans: Long-term investors seeking stability and exposure to India’s financial market infrastructure.
My self Anita Sahani. I have completed my B.Com from Purbanchal College Silapathar. I am working in Dev Library as a Content Manager. A website that provides all SCERT, NCERT 3 to 12, and BA, B.com, B.Sc, and Computer Science with Post Graduate Notes & Suggestions, Novel, eBooks, Health, Finance, Biography, Quotes, Study Materials, and more.
