NSDL IPO Opens with ₹140 GMP! Will You Miss the ₹926 Listing Boom?

National Securities Depository Limited (NSDL), India’s largest securities depository, launched its much-anticipated ₹4,011–₹4,012 crore IPO today. The issue, entirely an Offer for Sale (OFS), is drawing significant attention due to high grey market premium (GMP) and robust anchor investor participation.

nsdl ipo gmp review price listing date analysis 2025

Table of Contents

NSDL IPO Details and Subscription Window

NSDL’s IPO opened for public subscription on July 30, 2025, and will close on August 1, 2025. The price band is set at ₹760 to ₹800 per share, with the entire issue consisting of 5.01 crore equity shares offered by existing shareholders, including NSE, SBI, HDFC, IDBI Bank, Union Bank of India, and SUUTI.

This IPO is purely an OFS, meaning no fresh capital is being raised by the company. The expected listing date is August 5 or 6, subject to final regulatory approvals.

Ahead of the issue, NSDL raised ₹1,201 crore from anchor investors. Notable names include Life Insurance Corporation of India (LIC), Abu Dhabi Investment Authority (ADIA), SBI Mutual Fund, and Nippon India Mutual Fund, reflecting strong institutional confidence.

Grey Market Buzz: GMP Indicates Strong Listing Premium

The IPO is already generating a buzz in the grey market, with the latest GMP (Grey Market Premium) reported between ₹135 and ₹140, roughly 17% above the upper band price of ₹800. This suggests a potential listing price near ₹926 per share, giving investors a possible listing gain of ₹125–₹140 per share.

Earlier, GMP touched a high of ₹166, but it has slightly corrected as the subscription period began. Even with the dip, the current GMP is considered strong, indicating positive market sentiment and investor appetite for this offering.

NSDL Business Overview & Financial Highlights

Founded in 1996, NSDL is India’s first and largest depository, holding a custody value of ₹464.2 lakh crore, significantly more than its main competitor, CDSL (₹70.5 lakh crore). It plays a key role in India’s capital markets infrastructure.

FY25 Financials:

Revenue: ₹1,420 crore (up 12% YoY)
Profit After Tax: ₹343 crore (up 25%)
EBITDA Margin: ~34.7%

NSDL also operates two subsidiaries:

NSDL Database Management Ltd (NDML) – Focuses on e-governance and identity management.
NSDL Payments Bank Ltd (NPBL) – Offers digital banking and payment services.

Despite its scale, NSDL operates at lower margins than CDSL, owing to its wide service base and infrastructure expenses. Still, analysts say the company’s financials are solid and improving.

Analyst Recommendations, Valuation & Risks

Most brokerage houses have issued a “Subscribe for Long Term” rating for the IPO. Analysts cite NSDL’s:

Dominant market position
Strong financials
Reasonable valuation compared to listed peer CDSL

Based on the FY25 EPS, the stock is priced at a P/E multiple of ~46.6×, which many consider fair given its growth potential and strategic importance in India’s capital market ecosystem.

However, key risks outlined in the Red Herring Prospectus include:

Rising competition from CDSL and potential new entrants
Dependence on market volume and cyclical investor participation
Cybersecurity threats due to digital infrastructure
Regulatory constraints and evolving SEBI norms
Reliance on third-party vendors for tech services and execution

Conclusion

With a strong GMP, oversubscription in the anchor book, and solid fundamentals, NSDL’s IPO is shaping up to be a highly attractive offering for both institutional and retail investors. The estimated listing price in the ₹900–₹926 range offers a good opportunity for short-term gains, while long-term prospects remain robust due to India’s growing retail participation in financial markets.

That said, investors should balance optimism with caution, especially considering the competitive and regulatory landscape. Final allotments are expected in early August, and if GMP trends hold, listing gains could be substantial when shares debut on August 5 or 6, 2025.