Shares of National Securities Depository made a healthy debut on Dalal Street on August 6, listing at a premium of 10% over its IPO price. The stock listed at ₹880 on the BSE, as compared to the IPO price of ₹800.
Despite the double-digit gains, NSDL’s listing still lagged market expectations as grey market premiums for the stock ahead of its debut hinted towards listing gains of around 17%.
With its market debut, NSDL becomes the second depository service provider to be listed on the exchanges, joining its peer Central Depository Services (CDSL). The ₹4,011 crore public offer of NSDL witnessed in robust traction from investors, betting on the company's prospects India’s expanding financial participation and investment infrastructure.
The three-day offer was subscribed 41 times, attracting bids worth over ₹1.1 lakh crore from investors. Qualified institutional buyers (QIBs) led the charge, placing bids for nearly 104 times the total number of shares on offer for them. The portion reserved for non-institutional investors was subscribed 35 times, while that for retail investors was bid eight times the total number of shares on offer.
Prashanth Tapse, Senior VP (Research), Mehta Equities believes the robust response to NSDL’s IPO was well justified from a long-term investment standpoint, given its dominant position in the Indian depository ecosystem. “NSDL stands out as the strongest player in the institutional segment, with a commanding share in custodial and depository services for mutual funds, insurance companies, banks, and foreign portfolio investors (FPIs),” Tapse said.
While both NSDL and CDSL operate in the same space, their revenue models differ. NSDL derives a larger share of business from institutions and unlisted companies, whereas CDSL’s strength lies in its exposure to India’s booming retail investor segment.
“NSDL continues to lead in value-based transactions and institutional account holdings, underpinned by deep-rooted industry trust and robust technological infrastructure, making it a key pillar of India’s capital market framework. Alongside CDSL, it forms a near-duopoly, with high entry barriers for new competitors in the segment,” Tapse added.
For the financial year ended 2025, NSDL reported revenue of ₹1,420 crore, with an 18% compound annual growth rate (CAGR) in revenue over FY23–FY25. Net profit for the year stood at ₹343 crore, growing at a 21% CAGR over the last three years, while operating profit margin came in at a steady 26.4%.
Valuation-wise, NSDL made its debut at a relative discount to CDSL. At the upper end of its IPO price band, NSDL was priced at 17.16 times its FY25 earnings per share (EPS), compared to CDSL’s 25.2 times. On a price-to-earnings basis, the stock was valued at 47x versus CDSL’s 61x.
Looking ahead, NSDL plans to deepen its market presence and tap into new growth areas. The company has outlined a strategy focused on enhancing its IT infrastructure to drive operational efficiency and improve service standards. It also aims to broaden its range of offerings, strengthen database management and grow the market share of its payments bank arm.
While the company won’t receive any proceeds from the IPO, given its structure as an entirely offer-for-sale, its listing marks a milestone in giving the market a new way to play India’s expanding digital financial ecosystem.
