| Price | Lot Size | Issue Date | Issue Size |
|---|---|---|---|
| ₹ 760 to ₹ 800 | 18 | 30th Jul, 2025 – 1st Jul, 2025 | ₹4011.60 Cr |
National Securities Depository Ltd
National Securities Depository Limited (NSDL) is a SEBI-registered market infrastructure institution (“MII”) offering a wide range of products and services to the financial and securities markets in India. Following the introduction of the Depositories Act in 1996, through the company, NSDL pioneered the dematerialisation of securities in India in November 1996. As a depository, NSDL provides a robust depository framework that enables market participants to participate in the financial and securities markets in India. NSDL also plays a central role in developing products and services that will continue to address the growing needs of the financial services industry in India. NSDL derives its revenue from several sources, including transaction fees charged to depository participants and issuers of securities, custody fees charged to issuers, and annual fees charged to both depository participants and issuers. The company’s core depository services provide a steady source of recurring revenue, primarily through annual custody fees and annual maintenance fees. NSDL holds a strong position in the depository market due to the large variety of asset classes held in demat accounts. NSDL also plays a central role in developing products and services that continue to address the growing needs of the financial services industry in India. Using innovative and flexible technology systems, NSDL supports investors, brokers, issuers, and other market participants in the Indian capital markets, aiming to ensure the safety and soundness of the Indian securities market by developing settlement solutions that increase efficiency, minimise risk, and reduce costs. As of March 31, 2025, the company had a robust base of over 39.45 million active demat accounts, serviced through a network of 294 registered depository participants. Its account holders are geographically well-distributed, spanning more than 99.3% of India’s pin codes and 194 countries globally, demonstrating a broad and inclusive reach.
Objective of the National Securities Depository Ltd IPO
The company will not receive any proceeds from the offer, and all such proceeds (net of any offer-related expenses to be borne by the selling shareholders) will go to the selling shareholders.
Rationale To National Securities Depository Ltd IPO
India’s first and leading depository operating a wide range of technology-driven businesses
NSDL stands as India’s first and leading depository, commanding a dominant position across several key metrics, including the number of issuers, active instruments, demat settlement volume, and total assets held under custody as of March 31, 2025. It was the pioneer in introducing dematerialisation of securities in India, transforming the domestic capital market ecosystem. Notably, it was among the few global players to directly implement dematerialisation, skipping the conventional two-step process of immobilisation followed by dematerialisation. NSDL’s contribution has been critical to the evolution of trade settlement in India, from transitioning away from weekly account-based settlements to introducing rolling settlements. The company’s technology-led scripless system enabled the implementation of faster settlement cycles, culminating in the rollout of T+1 settlement by SEBI in January 2023 and a phased implementation of T+0 settlement for the top 500 market-cap scrips in 2025. This positions India among the most efficient capital markets globally. Additionally, the company has actively enabled other market innovations such as UPI blocks for secondary markets and direct pay-out mechanisms, aligned with SEBI’s regulatory framework. The company’s leadership is further evidenced by its expansive operational reach, hosting over 79,773 registered issuers and a nationwide network of 294 depository participants operating through 65,391 service centres. As of March 31, 2025, it serviced over 39.45 million active demat accounts, with coverage across 99.3% of Indian pin codes and 194 countries. The company surpassed key custody milestones, with assets under custody reaching Rs. 500 trillion as of September 2024, a testament to its scalability and growing systemic significance within India’s financial infrastructure.
Stable revenue base with a significant proportion of recurring revenue
The company demonstrates a structurally resilient business model, underpinned by a high share of recurring revenues, which ensures stable income across market cycles. Revenue from annual custody and annual participant fees forms a core component of this stability. These revenue streams, being contractual and periodic in nature, are less sensitive to short-term market volatility when compared to transactional income. For FY25, recurring revenue from the core depository business was Rs. 2,612.7 million, while the total recurring revenue, including related services transferred over time, stood at Rs. 2,795.1 million. Similar figures for total recurring revenue for FY24 and FY23 were Rs. 2,417.9 million and Rs. 2,250.3 million, respectively, reflecting consistent annual growth. A substantial portion of recurring revenue, 86.9% in FY25 (88.2% in FY24, and 86.5% in FY23), was contributed by annual custody fees charged to issuers and annual participation fees levied on depository participants. In addition to these core revenues, the company also generates stable income from a variety of ancillary services. These include annual charges for monitoring the foreign investment limit, fees from brokers under the IDeAS service, licensing income from DPs using the DPM platform, and fees from mutual funds, SEZs, insurance companies, and digital platforms such as Cloud DPM and NSR. In FY25, revenue from these services accounted for 13.1% of total recurring income, indicating a healthy diversification beyond the primary depository business. The average standalone operational revenue per investor account for FY25 stood at Rs. 156.8, which is significantly above peer benchmarks, highlighting higher monetisation and engagement per user. Overall, the revenue composition reflects both scale and quality, underlining the depository’s pivotal role in India’s capital market infrastructure.
Valuation of National Securities Depository Ltd IPO
National Securities Depository Limited maintains a dominant position in India’s depository ecosystem, particularly in terms of the diversity and scale of asset classes held within demat accounts. The number of companies holding their securities in demat form has increased from 17,835 in FY17 to 79,773 in FY25, representing a 20.6% CAGR growth rate for NSDL, compared to 9,887 to 35,922 from FY17 to FY25, growing at a 17.5% CAGR for CDSL. NSDL holds a higher share compared to CDSL among the two depositories in terms of the number of companies available for demat, the quantity, and value of securities held in demat form. NSDL maintains its focus on unlocking growth opportunities and deepening market reach by utilising its core competencies. The company plans to strengthen and modernise its IT infrastructure to improve operational efficiency, elevate service standards, and bolster resilience. Additionally, it aims to broaden its range of services, enhance its database management capabilities, and expand the market share of its payments bank division. On the financial front, the company has exhibited consistent growth. Between FY23 and FY25, revenue from operations rose from Rs. 10,219.8 million to Rs. 14,201.4 million. During the same period, profit after tax expanded from Rs. 2,348.1 million to Rs. 3,431.2 million, while EBITDA grew at a CAGR of 22.4%, increasing from Rs. 3,286.1 million to Rs. 4,929.4 million, demonstrating strong operational efficiency and profitability. The IPO is priced at a P/E of 46.6x on FY25 earnings at the upper end of the price band, which appears reasonable when compared to CDSL, currently trading at a P/E of 64.8x. We recommend a ‘SUBSCRIBE’ rating for the issue, supported by the company’s strong credit underwriting practices and prudent risk management framework.
What is the National Securities Depository Limited IPO?
The initial public offer (IPO) of National Securities Depository Limited offers an early investment opportunity in National Securities Depository Ltd . A stock market investor can buy National Securities Depository Ltd IPO shares by applying in IPO before National Securities Depository Ltd shares get listed at the stock exchanges. An investor could invest in National Securities Depository Ltd IPO for short term listing gain or a long term.
How to apply for the National Securities Depository Ltd IPO through StoxBox?
To apply for the National Securities Depository Ltd IPO through StoxBox one can apply from the website and also from the app. Click here
When will the National Securities Depository Ltd IPO open?
National Securities Depository Ltd IPO is opening on 30th Jul 2025. Apply Now
What is the lot size of the National Securities Depository Ltd IPO?
The Lot Size of National Securities Depository Limited IPO is 18 equity shares. Login to your account now.
When is the National Securities Depository Ltd allotment date?
The allotment Date for National Securities Depository Ltd IPO is 4th Aug 2025. Login to your account now.
When is the National Securities Depository Ltd IPO listing date?
The listing Date for National Securities Depository Ltd IPO is 6th Aug 2025. Login to your account now
What is the minimum investment required for the National Securities Depository Ltd IPO?
In the Retail segment the minimum investment required is Rs. 14,400. Login to your account now
What is the maximum investment allowed for the National Securities Depository Limited IPO?
In the Retail segment the maximum investment requirement is Rs. 1,87,200. Login to your account now
What are the risks associated with investing in the National Securities Depository Ltd IPO?
- A significant portion of the company’s business is transaction-based, particularly reliant on delivery-based trades and is therefore inherently dependent on trading activity in the Indian securities market. This activity is influenced by several external factors beyond the company’s control, including investor sentiment, macroeconomic conditions, regulatory changes, global economic developments, and geopolitical events. Any adverse changes in these factors can lead to a decline in trading volumes, which in turn may negatively impact transaction revenues, cash flows, and overall financial performance.
- The company’s operations are heavily dependent on complex information technology systems and networks to facilitate its services and manage critical functions. Any significant disruption, whether due to technical glitches, cyberattacks, system failures, or security breaches, could severely impact service continuity, compromise data integrity, and disrupt business operations.
- A material change in investors allocation patterns, such as a move away from securities investing and trading toward alternative asset classes or platforms, could diminish demand for the company’s depository and ancillary services. Such a shift may negatively impact transaction volumes, fee income, and overall revenue, thereby adversely affecting the company’s business performance, financial condition, and results of operations.
When will the National Securities Depository Ltd IPO shares be credited to my Demat account?
The National Securities Depository Limited. IPO be credited to the account on allotment date which is 5th Aug 2025. Login to your account now
Where can I find the National Securities Depository Limited IPO prospectus?
The prospectus of National Securities Depository Limited IPO prospectus can be find on the website of SEBI, NSE and BSE
