NSDL's ₹4,000 Cr IPO to Open After Months of Delay

NSDL's ₹4,000 crore IPO will open after a five-month delay due to compliance with SEBI regulations. The company will raise funds through an Offer for Sale (OFS) to comply with the regulator's mandate that shareholders hold no more than 15% of the total capital. The IPO is priced at ₹760 to ₹800 per share and will open on July 30, closing on August 1. The company has faced 16 technical glitches in 2025, but financial disincentives were paid. NSDL is making significant investments to increase technological innovations.

The Initial Public Offering (IPO) of National Securities Depository Ltd (NSDL), initially expected to open in February 2025, has been delayed by five months due to compliance with SEBI regulations. The IPO, priced at ₹760 to ₹800 per share, will now open on July 30, 2025, and close on August 1, 2025.

The delay is part of NSDL's efforts to comply with SEBI's mandate that no entity can hold more than 15% of the total capital in a market infrastructure institution. This regulatory requirement has led to a significant restructuring of NSDL's shareholding, with major shareholders such as the National Stock Exchange of India (NSE), IDBI Bank, and HDFC Bank reducing their stakes.

The IPO will be conducted through an Offer for Sale (OFS), which involves the sale of 50.145 million shares without fresh capital raising. The OFS structure aims to reduce the risk of overvaluation and ensure that proceeds from the sale go to existing shareholders, who are now incentivized to maintain NSDL's long-term credibility.

Despite the delay, NSDL has been making significant investments to enhance its technological capabilities. The company has faced 16 technical glitches in 2025, but financial disincentives have been paid to mitigate the impact on investors. These investments are aimed at increasing technological innovations and reducing operational inefficiencies.

The IPO represents a strategic opportunity for institutional investors to gain exposure to India's largest depository at a valuation that reflects its institutional strength and regulatory credibility. However, the conservative pricing may disappoint short-term speculators, and operational inefficiencies compared to CDSL could limit margin upside.

Institutional investors should consider the long-term growth potential of NSDL, particularly in unlisted securities and digital banking, as well as the company's role in India's financial ecosystem, which ensures recurring revenue with minimal cyclical exposure.

References:
- [1] https://www.ainvest.com/news/nsdl-ipo-strategic-opportunity-regulatory-compliance-market-volatility-2507/
- [2] https://mediabrief.com/nsdl-ipo-opens-july-30-2025/