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The Initial Public Offer (IPO) of National Securities Depository Limited (NSDL) is going to open for investors from July 30, and it will remain open till August 1. There is a lot of curiosity in the market about this IPO as it is a public issue of one of the oldest and largest depositories in India. But this IPO is completely an Offer for Sale (OFS), that is, the company will not get any new capital investment in it, but the existing shareholders are selling their stake. Before investing money in the IPO, investors need to understand the business model, finances, risks, and growth potential of NSDL.

Who is selling shares?

The shareholders who have decided to sell their stake in this IPO include some of the big institutions of the country. IDBI Bank, NSE, Union Bank of India, State Bank of India, HDFC Bank, and SUUTI (Special Undertaking of Unit Trust of India) are selling their partial stake in NSDL.

IDBI Bank: 2.22 crore shares
NSE: 1.80 crore shares
SBI: 40 lakh shares
SUUTI: 34.15 lakh shares
HDFC Bank: 20.10 lakh shares
Union Bank of India: 5 lakh shares

It is clear from this that the majority of the stake in the offer is held by major banks and institutions. ICICI Securities, Axis Capital, HSBC Securities, IDBI Capital, Motilal Oswal Investment Advisors, and SBI Capital Markets. At the same time, the registrar of the offer is MUFG Intime India. Their responsibility is to complete the IPO smoothly and allot shares.

NSDL is ahead of CDSL

NSDL is India's largest depository network, which keeps the investors' shares safe in demat form and makes their transactions easy. As of March 2025, data:

Most active instruments
Most issuer companies
65,391 service centers (while CDSL has only 18,918)

NSDL's only direct competitor is CDSL, but NSDL is ahead in terms of network and market share.

Strong financials of the company

NSDL's earnings are increasing continuously.

FY23: ₹1,021.98 crores

FY24: ₹1,268.24 crores

FY25: ₹1,420.14 crores

Strong growth in profits as well.

FY23: ₹234.81 crore
FY24: ₹275.45 crore
FY25: ₹343.12 crore
Looking at the figures, it is clear that the company's financial position is strong and there is a steady growth in both its revenue and profit.

What could be the loss?

According to RHP, the growth of NSDL depends on people continuing to invest in the stock market. If investors' interest shifts towards other means, the demand for NSDL's services may decrease. Apart from this, technical glitches or cyber attacks can affect the company's image and operations. Along with this, if the company is not able to expand its new products and services properly, then its hold in the market may weaken. Due to strict monitoring by SEBI, any major lapse can also cost NSDL heavily in the form of a financial penalty.

Vijay Chandok is the CEO of NSDL

Vijay Chandok is the Managing Director and CEO of NSDL. He took charge of the company in November 2024. Prior to this, he has been the Executive Director at ICICI Bank and Managing Director at ICICI Securities. The board of NSDL is composed of seven directors, including public interest directors. IDBI Bank, NSE, GKM Global Services, and India International Bullion Holding IFSC are group companies of NSDL. This gives the company support and opportunities in different financial and technology-related areas.

What should investors do?

NSDL is an established and trusted brand, which has both a strong market hold and technological infrastructure. However, this IPO is OFS, which means the company will not get any new funds in it, so it is important for investors to analyze the valuation and future growth.

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