The National Securities Depository Limited (NSDL )’s Initial Public Offer (IPO) is going to open to investors from July 30 and it will remain open till 1 August. There is a lot of curiosity in the market regarding this IPO as it is the public issue of one of the oldest and largest deployment in India. But this IPO is completely offer for sale (offs), that is, the company will not get any new capital investment in it, but the current shareholders are selling their stake. Before investing in IPOs, investors are very important to understand NSDL business models, financials, risks and growth potential.
Who is selling shares?
The shareholders who have decided to sell their stake in this IPO include some big institutions of the country. IDBI Bank, NSE, Union Bank of India, State Bank of India, HDFC Bank and SUUTI (Special Undertakings of Unit Trust of India) are selling their partial stake in NSDL.
- IDBI Bank: 2.22 crore shares
- NSE: 1.80 crore shares
- SBI: 40 million shares
- Suuti: 34.15 million shares
- HDFC Bank: 20.10 lakh shares
- Union Bank of India: 5 lakh shares
It is clear that most of the stake in the offer is with major banks and institutions. ICICI Securities, Axis Capital, HSBC Securities, IDBI Capital, Motilal Oswal Investment Advisors and SBI Capital Markets. At the same time, the Registrar of the offer is MUFG INTIME INDIA. Their responsibility is to complete the IPO smoothly and allotment shares.
NSDL is ahead of CDSL
NSDL is India’s largest depository network, which protects investors shares as a demat and makes their transactions easier. According to data up to March 2025:
- Most active instruments
- Most issues companies
- 65,391 service centers (while CDSL has only 18,918)
Let us know that the only direct rival of NSDL is CDSL but NSDL is ahead in terms of network and market share.
Company strong financials
NSDL’s earnings are continuously increasing.
- FY23: ₹ 1,021.98 crore
- FY24: ₹ 1,268.24 Crore
- FY25: ₹ 1,420.14 Crore
A strong lead in profit also.
- FY23: ₹ 234.81 Crore
- FY24: ₹ 275.45 crore
- FY25: ₹ 343.12 Crore
Looking at the data, it is clear that the company’s financial situation is strong and its revenue and profit are constantly growing.
What can harm?
According to RHP, the growth of NSDL depends on that people keep investing in the stock market. If the interest of investors goes towards other means, then the demand for NSDL services may be reduced. Apart from this, technical disturbances or cyber attacks can affect the image and operation of the company. With this, if the company is not able to extend its new products and services properly, then its grip in the market may weaken. Due to strict monitoring of SEBI, a major omission can also be overshadowed as an economic penalty on NSDL.
Vijay Chandok is NSDL’s CEO
NSDL’s Managing Director and CEO is Vijay Chandok. He took charge of the company in November 2024. Prior to this, he has been executive director in ICICI Bank and Managing Director in ICICI Security. The board of NSDL is made of seven directors, including public interest directors. IDBI Bank, NSE, GKM Global Services and India International Bullion Holding are group companies of IFSC NSDL. This gives the company cooperation and opportunities in different financial and technology related areas.
What to do investors?
NSDL is an installed and reliable brand, which has both strong catch and technological infrastructure in the market. However, this is an IPO ofS, that is, the company will not get any new funds in it, so investors are required to analyze on valuation and future growth.
Disclaimer: This article is only for information and should not be considered as an investment advice in any way. TV9 India suggests its readers and spectators to consult their financial advisors before taking any decision related to money.