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NSDL's Rs 4,012 crore IPO opens for subscription; GMP at 16%. Should you apply?

NSDL's IPO, an offer for sale of ₹4,012 crore, opens for subscription with a price band of ₹760-₹800 per share. Synopsis National Securities Depository Ltd (NSDL) launched its IPO on Wednesday, featuring an offer for sale of ₹4,012 crore. The IPO, priced between ₹760 and ₹800 per share, saw a 16% grey market premium ahead of its opening. The IPO of National Securities Depository Ltd (NSDL), India's first and largest depository, opened for subscription on Wednesday. The mainboard issue is entirely an offer for sale (OFS) worth Rs 4,012 crore by existing shareholders, with no fresh capital being raised. ADVERTISEMENT The IPO comprises 5.01 crore equity shares and will close on August 1. Investors can bid for a minimum of 18 equity shares and in multiples thereafter. NSDL will be listed on BSE, with listing likely on August 6. The price band for the IPO is fixed at Rs 760 to Rs 800 per share, and the grey market premium (GMP) stood at 16% ahead of opening. NSDL is a key market infrastructure institution and the first depository to begin operations in India after the Depositories Act, company offers depository services across asset classes, including equities, debt, mutual funds, REITs, InvITs, AIFs, and more. Its network covers over 99% of PIN codes in India, and its client base spans 186 countries. ADVERTISEMENT The depository operates on a robust annuity-like revenue model through annual issuer and transaction-based charges. ADVERTISEMENT In FY25, NSDL posted revenue of Rs 1,420 crore, a 12% rise over the previous year, while profit after tax rose 25% year-on-year to Rs 343 crore. Its EBITDA margin stood at 34.71%, reflecting strong operational company has also diversified its revenue streams through subsidiaries like NSDL Database Management Ltd (NDML) and NSDL Payments Bank Ltd (NPBL), venturing into e-governance, regulatory platforms, and digital banking. ADVERTISEMENT On valuation, NSDL is priced at a P/E of 46.62x and a P/B of 7.98x based on FY25 earnings. While its peer Central Depository Services (India) Ltd (CDSL) trades at a higher P/E of 60.43x and P/B of 18.08x, NSDL commands a larger share of demat assets and broader service have largely recommended a 'Subscribe' rating to the NSDL IPO for long-term investors. Anand Rathi and Canara Bank Securities cite NSDL's near-monopoly scale in the depository ecosystem, healthy financials, wide product coverage, and strategic relevance to India's capital market infrastructure as key positives. ADVERTISEMENT (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times) (You can now subscribe to our ETMarkets WhatsApp channel) Nikita Papers IPO opens on May 27, price band set at Rs 95-104 per share Nikita Papers IPO opens on May 27, price band set at Rs 95-104 per share Why gold prices could surpass $4,000: JP Morgan's bullish outlook explained Why gold prices could surpass $4,000: JP Morgan's bullish outlook explained Cyient shares fall over 9% after Q4 profit declines, core business underperforms Cyient shares fall over 9% after Q4 profit declines, core business underperforms L&T Technology Services shares slide 7% after Q4 profit dips L&T Technology Services shares slide 7% after Q4 profit dips Trump-Powell standoff puts U.S. Rate policy in crosshairs: Who will blink first? Trump-Powell standoff puts U.S. Rate policy in crosshairs: Who will blink first? SEBI warns of securities market frauds via YouTube, Facebook, X and more SEBI warns of securities market frauds via YouTube, Facebook, X and more API Trading for All: Pi42 CTO Satish Mishra on How Pi42 is Empowering Retail Traders API Trading for All: Pi42 CTO Satish Mishra on How Pi42 is Empowering Retail Traders Security, transparency, and innovation: What sets Pi42 apart in crypto trading Security, transparency, and innovation: What sets Pi42 apart in crypto trading Bitcoin, Ethereum, or Altcoins? How investors are structuring their crypto portfolios, Avinash Shekhar explains Bitcoin, Ethereum, or Altcoins? How investors are structuring their crypto portfolios, Avinash Shekhar explains The rise of Crypto Futures in India: Leverage, tax efficiency, and market maturity, Avinash Shekhar of Pi42 explains NEXT STORY