NSDL IPO debuts at 10% premium: Should you hold?
What's the story
National Securities Depository Limited (NSDL) made its debut on the stock market today, with its shares listing at ₹880 per share on the BSE. This is a 10% premium over its issue price of ₹800 per share and below the recent gray market premium of about 18%. The company's IPO was oversubscribed by 41 times, with institutional investors leading the charge by subscribing nearly 104 times their portion.
Market capitalization
Market cap at ₹17,600 crore post-listing
Post-listing, NSDL's market capitalization stands at ₹17,600 crore. The company is a major player in India's dematerialized securities market and has shown revenue and profit growth in FY25. Analysts recommend holding onto the shares for the long term due to NSDL's strong fundamentals and leadership position in the depository space. However, they also caution investors about its reliance on transaction volumes and high regulatory risks.
Market infrastructure
NSDL's role in India's dematerialized securities market
Established in 1996, NSDL is a SEBI-registered Market Infrastructure Institution (MII) and plays a key role in India's dematerialized securities market. It provides services such as demat account services, trade settlements, corporate actions, e-voting, consolidated account statements and pledge services. The company's subsidiaries also extend its reach into e-governance and digital banking. As of March 2025, NSDL had 3.94 crore active Demat accounts with 294 depository participants.
Financial growth
Financial performance and valuation metrics for FY25
In FY25, NSDL reported a 12% increase in revenue to ₹1,535.19 crore and a 25% rise in PAT to ₹343.12 crore. The IPO was priced at a P/E of 46.63 and price-to-book value of 7.98. Despite being considered fully priced by some analysts, NSDL's institutional stature, dividend-paying track record, and growth in value-added services have made the issue attractive for long-term investors amid rising retail participation and digital finance expansion in India.