Wishlist: NSDL IPO Price at INR 700–800, Leaving Ample Room for Gains

India’s capital markets are about to hit a big milestone this month. National Securities Depository Limited (NSDL), the country’s first depository institution, is going to launch its INR 3,400 crore IPO soon. While the company hasn’t yet revealed specific details, the whispers on the Dalal Street are indicating that NSDL IPO price may be around INR 700–800 per share. This would value the depository between INR 15,000 and 16,000 crore. This valuation provides significant headroom for growth compared to industry peers, offering both retail and institutional investors an opportunity to invest in the core infrastructure of India’s capital markets.

But with the company operating in a regulated duopoly and showing stable but unexciting retail growth, does the IPO offer value at current valuations? Let’s see.

NSDL IPO Overview: Calibrated and Compliant

NSDL IPO is a pure Offer for Sale (OFS), with no fresh equity issue. The proceeds will not go to NSDL but to existing shareholders who comply with SEBI’s 15% ownership cap on Market Infrastructure Institutions (MIIs). Among those selling shares are IDBI Bank, NSE, Union Bank of India, SBI, HDFC Bank and SUUTI.

Interestingly, some shareholders have reduced their offer sizes since the original DRHP filing. For example, Union Bank of India has reduced its offer from 56 lakh shares to 5 lakh shares, and HDFC Bank has halved its offer, indicating a more cautious monetisation strategy given the changing market sentiment.

Revised Offer Details:

Aspect	DRHP 2023	Addendum 2025	Change
Total Shares Offered	5.73 crore	5.02 crore	↓ ~70 lakh
Estimated Issue Size (INR Cr)	3,500	3,000–3,400	↓ ~500

Financial Snapshot: Stability with a Conservative Tilt

NSDL’s financials are characterised by consistency, recurring income, and a strong EBITDA profile, even if growth is relatively measured.

Key FY25 Metrics:

• Revenue: INR 1,420 crore
• Net Profit: INR 343 crore
• EBITDA: INR 375 crore
• EPS: INR 17.16
• EBITDA Margin: 26.4%
• PAT Margin: 24.2%
• ROE: 16.36%

At an NSDL IPO price band of INR 700–800, the P/E valuation falls between ~40x to 46x, placing it well below peers like CDSL (67.4x), KFin Technologies (65.2x), and CAMS (49.4x).

Business Model: Infrastructure Over Alpha

NSDL isn’t a retail-heavy one-time transactional platform, it is rather an institutional utility, built on resilient, regulatory-backed operations that are used on a recurring basis. Its key revenue streams include:

• Depository Services (~40% of ops revenue)
• Transaction Fees
• Account Maintenance Charges
• e-Governance & KYC Services
• Tech-Enabled Solutions (e-voting, blockchain covenant monitoring)

A significant 20% of revenues come from recurring sources, providing insulation against market cyclicality.

Scale, Reach, and Tech Backbone

• Demat Accounts: 3.88 crore
• Registered Issuers: 64,535
• Demat Custody Value: INR 484 lakh crore
• DP Service Centres: 63,542
• NRI AUC Share: 85.6%
• Debt Securities Custody Share: 96.9%

NSDL’s tech investments reflect its systemic relevance, including:

• MITRE ATT&CK® compliance
• EDR systems & APM observability
• Blockchain pilot for bond covenant tracking
• UPI-block secondary market features
• Consolidated investor dashboards via the IDeAS platform

NSDL IPO Price and Peer Valuation Comparison

Company	EPS (INR)	CMP (INR)	PE Ratio (X)	Market Cap (INR Cr)	Focus	ROE (%)
NSDL	17.16	750–800	44–46	~15,000	Institutional	16.4
CDSL	25.2	1,698	67.4	35,499	Retail	32.6
CAMS	89.2	4,212	49.4	20,836	Mutual Fund RTA	43.9
KFin Tech	19.3	1,260	65.2	21,690	Mutual Fund RTA	26.1

From a pure valuation standpoint, NSDL appears conservatively priced, particularly if the listing reaches GMP-indicated levels of INR 870–970. That would translate to a post-listing P/E of ~50 to 56x—still trailing its peers and leaving ample room for growth.

GMP & Market Buzz

NSDL shares were recently trading in the unlisted market at INR 1,200–1,250, but have since corrected by ~20% to around INR 1,025. It’s important to note that unlisted market prices are not regulated and should not be considered as a benchmark for IPO pricing. IPOs are often priced below prevailing unlisted rates, and the NSDL IPO price is likely to be in the INR 700–800 range.

Several past instances highlight this disconnect — HDB Financial, Tata Technologies, and Waaree Energies, for example, saw IPO prices significantly lower than their pre-IPO unlisted valuations. In Tata Technologies’ case, unlisted shares were trading at INR 1,010–1,100, while the IPO was priced at INR 475–500. Similarly, Waaree Energies peaked at INR 3,200 in the unlisted market but priced its IPO at INR 1,427–1,503.

Final Take

NSDL is not a momentum stock or a speculative IPO. It’s a quality, systemic infrastructure play—ideal for long-term investors seeking steady earnings, regulatory credibility, and monopoly-like business characteristics. It offers stability, not fireworks. The NSDL IPO marks a pivotal moment in India’s capital market evolution. For investors seeking to back the plumbing behind the markets, this is a worthy consideration, just not a get-rich-quick listing.

📌 NSDL IPO price is expected to be in the range of INR 700-800 and it will open from 24 July to 28 July. Listing expected on BSE and NSE.
📈 Watch for final RHP release, anchor allocations, and subscription levels for a clearer sentiment signal.

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