IPO-Bound NSDL Posts Nearly 5% Rise in Net Profit to Rs 83 crore in Mar Qtr

 IPO-bound National Securities Depository Ltd (NSDL) on Sunday reported a 4.77% rise in consolidated net profit to Rs 83.3 crore for the three months ended March 2025. The company had posted a net profit of Rs 79.50 crore in the same quarter of the preceding fiscal.

Its total income rose 9.94% to Rs 394 crore in the quarter under review from Rs 358 crore in the January-March quarter of 2023-24, NSDL said in a statement.

For the full fiscal year, the depository's net profit surged 24.57% to Rs 343 crore and total income rose 12.41% to Rs 1,535 crore over FY24.

The depository's board of directors has recommended a final dividend of Rs 2 per equity share for the financial year FY 2024-25, subject to the approval of the shareholders.

NSDL facilitates the holding and transfer of securities in dematerialised form. Its demat account holders were in more than 99% of pin codes in India and 186 countries across the world, with over 63,000 service centres in FY24, covering every state and Union territory.

The depository cut its initial public offering (IPO) size, according to an addendum to its draft papers filed earlier this month. The issue now comprises 5.01 crore shares compared to 5.72 crore shares mentioned in the draft red herring prospectus earlier.

The IPO only consists of an offer-for-sale (OFS) component and those selling shares under this include the National Stock Exchange of India (NSE), State Bank of India (SBI), and HDFC Bank. Since the public issue is entirely an OFS, NSDL will not receive any proceeds from the IPO.

NSDL has been granted an extension by markets regulator Sebi for the listing of its shares until July 31, 2025. This upcoming listing will make NSDL the country's second publicly traded depository after Central Depository Services (CDSL), which was listed on the NSE in 2017.

The listing of NSDL is crucial in order to comply with SEBI's ownership norms. These regulations require that no entity can hold more than 15% of the shareholding in a depository company.

NSDL's principal shareholders, IDBI Bank and the NSE, are required to reduce their stake in the company to comply with Sebi's rule. Currently, IDBI holds 26.10% and NSE owns a 24% stake in NSDL, which exceeds the permissible limit.