The National Securities Depository Ltd (NSDL) is set to launch its much-anticipated initial public offering, which will consist entirely of an Offer for Sale (OFS) of up to 50,145,001 equity shares with a face value of ₹2 each. The 100% book-built issue has been priced between ₹760 to ₹800 per share, with investors required to bid in minimum lots of 18 shares. The subscription window will remain open from July 30 to August 1, 2025, with allotments expected by August 4 and shares likely to be credited to demat accounts by August 5. The listing is scheduled on or before August 6, 2025, marking a significant milestone for India’s capital markets infrastructure.
As India’s first and largest depository, NSDL has played a pivotal role in transforming the country’s securities market since its establishment following the Depositories Act of 1996. The institution, which pioneered dematerialization of securities in November 1996, has grown to become the market leader by multiple parameters including number of issuers (5,800+), active instruments (35,000+), and value of assets under custody (₹400+ trillion). Its extensive network of 65,391 depository participant service centers across India far exceeds its closest competitor, reflecting its dominant position in the market.
The IPO comes at a time of unprecedented growth in India’s capital markets. Demat accounts have expanded at 21.94% CAGR from FY2014 to reach 192.4 million by March 2025, fueled by increasing retail participation and the emergence of new-age fintech brokers. These digital platforms, offering zero or minimal brokerage, have captured 70% market share as of March 2025 – a dramatic increase from just 5% in FY2016. The depository market itself has grown at 27.4% CAGR in client accounts from FY2017 and is projected to maintain 11-12% growth through FY2027, with industry revenues expected to reach ₹21-22 billion by FY2027 from ₹17.16 billion in FY2025.
NSDL’s strengths position it well to capitalize on this growth, including its first-mover advantage, robust technology infrastructure handling over 5 million transactions daily, and diversified revenue streams with 85% recurring income. However, investors should note certain risks including dependence on securities market volumes, potential technological disruptions to its systems processing ₹25-30 trillion worth of settlements daily, and increasing competition from digital-first market participants. The institution’s ability to maintain its 68% market share in a rapidly evolving financial landscape, while navigating regulatory requirements across its 11 business verticals, will be critical to its post-listing performance.
With India’s financial markets continuing their strong growth trajectory – evidenced by the 32% year-on-year increase in demat account openings in FY2025 – NSDL’s IPO represents a unique opportunity to invest in the backbone of the country’s securities infrastructure. The offering is particularly significant as it comes amid rising foreign investor interest in India’s market infrastructure, with NSDL’s valuation reflecting both its entrenched position and future growth potential in an increasingly digital financial ecosystem.
