The timeline for listing of NSDL IPO was expiring on 31st July. But now the market regulator SEBI has allowed the depository to list by Aug 14. NSDL stated they it has received the communication for extension of listing on Monday.
This is the second extension SEBI has given to NSDL for listing on exchanges. In April, the depository requested an extension from April 13 to July 31st. “SEBI in-principle approval requires us to complete the listing process before April 13, 2024, which has been extended till July 31, 2025. If we fail to comply with this deadline, we may be required to apply for an extension or a fresh approval, which may not be granted promptly, or at all,” said NSDL in its Addendum to Draft Red Herring Prospectus (DRHP).”
Ownership Issues Behind This IPO Delay
SEBI has mandated a 15% rule for IPOs, especially for the Market Infrastructure Institutions, where a single entity ownership should be a maximum of 15% of the total stake of that company. Currently, NSE and IDBI Bank each have more than 20% stake in NSDL. Since NSDL is yet to fulfil the 15% requirement, both the stakeholders have requested an extension of the NSDL IPO.
NSDL Unlisted Shares Down By 20%
In June 1st week. NSDL unlisted shares reached a 52-week high of Rs 1200 but have been declining since then. Currently trading at Rs 1025 per share, which is almost a 20% decline within a month. This decline is possibly due to the HDB valuation debacle, where the issue price came at a 50% discount to the unlisted trade price. So investors had apprehensions that NSDL could have a similar fate.
About NSDL IPO
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 the listing will help in faster trading of NSDL shares.
NSDL has also cut its IPO size from 5.73 crore shares to 5.01 crore shares, as stated in the earlier DRHP.
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.
Factor | 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 effect |
NSDL has strong credibility and institutional links, but may not justify such a high multiple purely on fundamentals. This can be another possible reason for the decrease in NSDL Unlisted Share Price.
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