National Securities Depository Ltd. (NSDL) has launched its Initial Public Offering (IPO) today. The IPO size is ₹4,011 crore.

Price Band & Investment

The initial public offering (IPO) share price is planned at ₹760 to ₹800 per share.

You must purchase a minimum of one lot, which consists of eighteen shares.

Therefore, you will require at least ₹14,400 to invest, which is equal to 18 shares × ₹800.

What Kind of IPO is This?

The offer for sale (OFS) for this IPO is 100%.

In other words, NSDL is not obtaining fresh funding for its operations.

Rather, current stockholders are selling their holdings.
All of the proceeds from this IPO will go to existing investors who are selling their shares or lowering their holdings; NSDL will not get any money.

The depository services provider received ₹1,201 crore from anchor investors, such as LIC and the Abu Dhabi Investment Authority (ADIA), prior to the IPO opening.

At the upper end of the pricing range, bids for the IPO can be made for multiples of 18 shares, or for a single lot of 18 shares, which would need a minimum investment of ₹14,400.

At the upper price band, NSDL is valued at ₹16,000 crore, or 46.6 times its FY25 earnings. Key risks include limited service expansion, overreliance on transaction-based revenues, and potential decline in investor interest in securities markets.

Angel One

Angel One recommends subscribing for the long term, citing growth potential driven by capital market expansion, financial inclusion, and policy reforms.

However, it warns of risks like regulatory pricing pressure, CDSL competition in retail, and market-dependent revenues.

Bajaj Broking

Bajaj Broking also recommends a long-term purchase of NSDL IPO, pointing out a significant growth potential given that demat penetration in India is only 13.4%.
A decline in transaction activity that could impact revenue, shifting investor trends, and outside market variables are some of the main dangers.

NSDL IPO: Investment Opportunity or Risky Bet?

Price Band & Investment

Author: Anushka Singh