Firm Overview
Nationwide Securities Depository Ltd. (NSDL), integrated in 1996, is India’s first and largest securities depository and a SEBI-registered Market Infrastructure Establishment (MII). The corporate performed a pioneering position within the dematerialisation of securities in India. As of March 31, 2025, NSDL holds an ~86.8% share of the overall worth of dematerialised securities beneath custody and operates a community of 294 depository members (DPs) throughout 65,391 service centres. It companies over 3.95 crore lively demat accounts, protecting 99.34% of Indian pin codes and customers from 194 international locations.
Its subsidiaries embody:
- NDML: Gives e-governance and regulatory expertise platforms (SEZ On-line, KRA, Insurance coverage Repository, and many others.).
- NPBL: Operates a Funds Financial institution with over 2.42 million lively accounts and leads in AePS and micro-ATM transactions.
The corporate operates a sturdy and extremely scalable depository infrastructure supporting numerous asset courses together with equities, debt, mutual funds, REITs, InvITs, SGBs, T-bills, and extra.
Promoters & Shareholding
NSDL is a professionally managed firm with no identifiable promoter. The shareholding is fully held by public establishments and monetary entities. Submit-issue, the general public shareholding will improve considerably because of the Supply for Sale.
| Class | Pre-Subject | Submit-Subject |
| Public Shareholding | 27.30% | 52.38% |
| Non-Public (Establishments) | 72.70% | 47.62% |
Public Subject Particulars
- Subject Dimension: ₹3,810 Cr – ₹4,011 Cr (Supply for Sale of 5.01 Cr shares)
- Worth Band: ₹760 – ₹800 per share
- Face Worth: ₹2 per share
- Minimal Lot Dimension: 18 shares (₹14,400 at higher band)
- Submit-Subject Market Cap: ₹15,200 Cr – ₹16,000 Cr
- Itemizing: BSE
- Supply Interval: July 30 – August 1, 2025
- BRLMs: Axis Capital, ICICI Securities, HSBC, SBI Capital, IDBI Capital, Motilal Oswal
Objects of the Supply
- 100% Supply for Sale by present shareholders
- No contemporary capital raised; proceeds go to promoting shareholders
Key Strengths
- Market Management: 86.8% market share in worth of dematerialised securities (vs. 13.2% for CDSL)
- Recurring Income Base: From issuer custody charges, DP upkeep charges, transaction charges, pledge/margin pledge, and digital LAS
- Tech-Pushed Innovation: First to introduce T+0 settlements; blockchain-based safety monitoring; digital platforms (CAS, IDeAS, SPEED-e)
- Diversified Choices: Together with KYC, insurance coverage repository, digital lending, and mutual fund APIs by means of NDML and NPBL
- Excessive Effectivity:
- Demat holding per account with NSDL is ₹11.8 Mn
- FY25 Working Margin (EBITDA): 26.4%; PAT Margin: 24.2%
Dangers
- 100% OFS; no contemporary infusion of progress capital
- Regulatory dependence on SEBI, RBI, and MCA for enterprise continuity
- Faces competitors from CDSL, particularly in retail penetration (CDSL has greater variety of accounts)
- Concentrated income streams from market-related companies vulnerable to financial cycles
Business Outlook
India’s capital market infrastructure has witnessed unprecedented progress lately, pushed by beneficial regulatory developments, elevated retail investor participation, and rising digital adoption. Demat accounts in India have grown at a sturdy CAGR of 21.9% from 21.7 million in FY14 to 192.4 million in FY25, highlighting the huge untapped market potential in a rustic with over 1.44 billion inhabitants. Regardless of this progress, penetration stays modest at simply 13.4% as of FY25, indicating an extended runway forward.
The Ministry of Company Affairs has mandated the dematerialisation of securities for unlisted public firms (2018) and most non-public firms (2023), additional increasing the scope of depositories like NSDL. In parallel, rising IPO exercise, obligatory KYC norms, and growing financialisation of family financial savings are creating sustained demand for depository and ancillary companies. The depository ecosystem can be benefiting from deepening of the bond market, greater compliance requirements for issuers, and larger world participation by way of FPIs.
Globally, India is among the many few markets to have applied near-instantaneous settlement mechanisms corresponding to T+1 and pilot T+0 settlement. These improvements have cemented India’s place as a number one monetary market infrastructure hub. NSDL’s position in enabling such efficiencies by means of a sturdy digital structure makes it a essential participant on this transformation. Furthermore, the shift in direction of built-in digital platforms for KYC, e-governance, insurance coverage demat, mutual funds, and digital banking underscores the relevance of NSDL’s ecosystem going ahead.
On this context, NSDL stands to profit considerably from the structural tailwinds within the Indian capital markets. The compounding impact of elevated transaction volumes, regulatory compliance, technology-led efficiencies, and deeper penetration throughout geographies makes the depository enterprise a secular long-term progress alternative.
Monetary Snapshot (Consolidated, ₹ in Cr)
| Particulars | FY23 | FY24 | FY25 |
| Income from Ops | 1,021.99 | 1,268.24 | 1,420.15 |
| Income Development (%) | – | 24.1% | 11.9% |
| EBITDA | 328.60 | 381.13 | 492.94 |
| EBITDA Margin (%) | 25.0% | 24.0% | 26.4% |
| PAT | 234.81 | 275.45 | 343.12 |
| PAT Margin (%) | 21.3% | 20.2% | 24.2% |
| EPS (in ₹) | 11.74 | 13.77 | 17.16 |
| ROE (%) | 16.4% | 16.4% | 17.1% |
| Internet Value | 1,428.86 | 1,684.10 | 2,005.34 |
Valuation:
- P/E Ratio (FY25): 46.6x at higher band
- Implied Submit-Subject Market Cap: ₹16,000 Cr
- Return on Internet Value (RONW): 17.1%
Peer Comparability with CDSL:
| Metric | NSDL (FY25) | CDSL (FY25*) |
| Market Share (Worth) | ~86.8% | ~13.2% |
| No. of DPs | 294 | 583 |
| Energetic Demat Accounts (Cr) | 3.95 | ~10.1 |
| Income (₹ Cr) | 1,420.15 | ~1,300 (est.) |
| PAT (₹ Cr) | 343.12 | ~310 (est.) |
| P/E Ratio | 46.6x | ~52–55x |
Suggestion
NSDL is a mission-critical monetary infrastructure participant with sturdy trade positioning, strong margins, regular money flows, and a diversified enterprise by means of its tech-led subsidiaries. Whereas Central Depository Providers Ltd. (CDSL) might lead in account volumes, NSDL retains dominance in worth of property and institutional scale. In comparison with CDSL, NSDL demonstrates superior capital effectivity and technological capabilities, whereas being attractively priced with a decrease P/E a number of.
Regardless of being a pure OFS, the IPO gives publicity to a uncommon asset in India’s capital market ecosystem.
Suggestion: “Subscribe for Lengthy-Time period Funding”
Valuations are truthful contemplating market management, progress runway from rising financialisation, and secure profitability. Appropriate for traders looking for core publicity to India’s capital market infrastructure.
Disclaimer:
This text shouldn’t be construed as funding recommendation, please seek the advice of your Funding Adviser earlier than making any sound funding choice.
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