Ahead of the much-awaited NSDL IPO, the unlisted shares of National Securities Depository Limited (NSDL) have taken a hit just before the tentative nsdl ipo date launch on July 25. NSDL has its DRHP approved by the Securities and Exchange Board of India and must go live before 31st July. NSDL is planning to raise around Rs 3,500-4,000 crore from the primary market.
The Dip In NSDL Share Price
The nsdl unlisted share price, which was once trading around Rs 1,275 on June 25 fell by almost 20% in just one month. Now, nsdl share price today is trading at Rs 1,009. This sharp downward valuation is possibly due to the high anticipation before the IPO and then the HDB Share Price fall, giving the markets a reality check for healthy pre-ipo valuations.
NSDL IPO News Details
NSDL was going to raise 57.26 million equity shares, but has trimmed down its IPO size to raise 50.15 million equity shares.
There will be no fresh share sale.NSDL IPO will be a 100% Offer For Sale (OFS) by the following shareholders:
- IDBI Bank- Selling 11.1% Stake
- NSE – Selling 9% Stake
- SBI, HDFC Bank, and Union Bank, with other investors, are selling 5% stake.
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 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:
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% from 1,022 crore in FY23 to Rs 1,420 crore in FY25. However, the YoY growth slowed down from 24% in FY24 to 12% in FY25 – a first sign that the post-pandemic demat-account boom is maturing.
- EBITDA grew 32 % in FY‑25 after a modest 12 % rise the year before, lifting the margin back above 24 %. The swing tells us management re‑tightened costs just as fee income kept expanding, converting operating leverage into profit. The same effect can be seen on Profit After Tax (PAT)
NSDL Valuation Check
Let’s check the relative valuation of NSDL as compared to its direct competitor CDSL
| Metric | NSDL | CDSL |
| P/B Ratio | 13.6 | 84.2 |
| P/E Ratio | 83.1 | 70 |
| Market Share | ~29 % | ~71 % |
| Growth Type | Institutional + Government‑focused | Retail investor‑driven |
| Valuation Comfort | Expensive vs. peer | Moderate |
| Monopoly Benefits | Limited (SEBI mandates two depositories) | Stronger network effects |
At ₹ 1,024 NSDL is not expensive on the numbers available today.
- It prices in a modest 15 % earnings discount to CDSL and a much steeper 42 % book discount.
- The current P/B and P/E multiples imply a fair value between ₹ 1,145 and ₹ 1,444,so the current quote sits in the lower half of that band.
Whether the discount should close depends on two levers:
- Margin expansion (via new fee lines and cost discipline).
- Retail penetration gains without giving up high‑value institutional flows.
If management can demonstrate margin catch‑up or faster retail traction, the share offers 15‑20 % near‑term upside (to earnings parity) and materially more if it can convince the market it deserves CDSL‑like P/B multiples. Until then, the market is paying up for CDSL’s higher profitability and rewarding NSDL mainly for its balance sheet strength rather than its earnings power.
Moreover, HDB unlisted share valuation debacle has led to doubt in investors’ minds about the pre-ipo valuations are bubbles which eventually burst. Despite this NSDL Unlisted Share still holds a positive sentiment among investors.
