The National Securities Depository Limited (NSDL) is moving ahead to launch its IPO on July 25. This time, with a plan to raise $400 million (Around Rs 3,421.6 crore), as reported by Bloomberg. India’s oldest and largest depository by assets filed its DRHP in 2023, which got approved in September 2024.
Let’s explore various aspects of NSDL IPO from an investor’s point of view:
NSDL IPO Details
NSDL Share Price IPO: NSDL IPO is a book-built issue, which is expected to be announced near the IPO date. If we apply a 40-55x multiple to the recent EPS of Rs 17.15, the price band may range between Rs 750-900 per share.
NSDL IPO Date: The IPO is yet to be announced. We can expect the IPO on July 25.
Vikram Solar IPO Issue Size: NSDL IPO will consist of 5.01 crore shares in an offer for sale (OFS) by existing shareholders like IDBI Bank, National Stock Exchange of India, and State Bank of India. There will be no fresh issue.
NSDL Business Model
Established in 1996 as a state infrastructure, NSE handles and holds most of the securities held in dematerialised form. NSE’s core services consist of the following:
Objectives Of NSDL IPO
1. This is a purely Offer for Sale (OFS) for the current investors to sell their stake.
2. NSDL aims to list on the BSE to grow its market presence and visibility.
3. Liquidity for shareholders as listing will help in faster trading of NSDL shares.
NSDL Financial Performance
| Particulars (in Rs Crores) | FY 2025 | FY 2024 | FY 2023 |
| Revenue | 1,420 | 1,268 | 1,022 |
| EBITDA | 375 | 285 | 255 |
| PAT | 343.42 | 275.44 | 235 |
| EBITDA Margin | 24.2 % | 21.7 % | 23 % |
| EPS | 17.15 | 13.75 | 11.75 |
Revenue grew at a CAGR of 17.8%.
NSDL vs CDSL Comparing Financials (FY 24)
| Particulars(In Rs Crore) | NSDL (National Securities Depository Limited) | CDSL (Central Depository Services Limited) |
| Revenue from Operations | 1,268.24 Cr | 812.26 Cr |
| Total Income | 1,365.70 Cr | 907.30 Cr |
| EBITDA | 382.49 Cr | 584.43 Cr |
| PAT (Profit After Tax) | 275.44 Cr | 419.55 Cr |
| EPS (Earnings Per Share) | 13.77 | 20.07 |
| Net Worth | 1,684.10 Cr | 1,507.19 Cr |
| Total Assets | 2,257.74 Cr | 1,781.65 Cr |
- Revenue & Income: NSDL reported higher revenue and total income compared to CDSL, reflecting its larger operational scale.
- Profitability: CDSL outperformed NSDL in EBITDA (₹584.43 Cr vs. ₹382.49 Cr) and PAT (₹419.55 Cr vs. ₹275.44 Cr), indicating better cost efficiency.
- EPS: CDSL’s higher EPS (₹20.07) suggests stronger per-share profitability despite NSDL’s larger revenue base.
- Net Worth & Assets: NSDL maintains a stronger net worth and asset base, aligning with its institutional focus and government-linked projects.
Both depositories are debt-free, with NSDL holding a larger market share in securities value and CDSL leading in demat account numbers.
NSDL IPO Valuation
If we expect the NSDL IPO to list around Rs 750-900 per share. Then assumed P/E will be 40-55x.
Fac tor | NSDL IPO | CDSL |
| Price Band (₹) | 750 – 900 (Estimated) | 1600-1700 (Market Price) |
| EPS (₹) | 17.15 | 25.2 |
| P/E Ratio | 43.7x – 52.5x | ~22x – 23x |
| Market Share | ~29% | ~71% |
| Growth Type | Institutional + Government-focused | Retail investor-driven |
| Valuation Comfort | Expensive vs. Peer | Moderate |
| Monopoly Benefits | Limited (SEBI mandated 2 depositories) | Stronger network effects |
NSDL has strong credibility and institutional links, but may not justify such a high multiple purely on fundamentals. Therefore its best to wait for a decrease in NSDL Unlisted Share Price before its IPO.
