NSDL IPO: Key Updates
NSDL recently submitted an addendum to its DRHP with SEBI, reducing the IPO size from 57.26 million shares to 50.15 million shares. This move is seen as strategic, possibly aimed at better pricing and investor appetite.
But what exactly does this mean? The addendum is essentially an update to the earlier filed DRHP, with revised business data and financials.
What is NSDL?
Founded in 1996 and officially renamed in 2013, NSDL is a SEBI-registered Market Infrastructure Institution (MII). It played a pioneering role in dematerialising securities in India, eliminating the risks of paper-based trading. NSDL supports electronic settlement of trades and offers a wide range of services, including:
- Demat account maintenance
- Margin pledging
- Corporate actions
- SMS alert services
- e-Voting and dividend processing
- Consolidated account statements
Interestingly, it was also the first depository to roll out instant SMS alerts in 2007.
Financial Snapshot
NSDL’s financial performance has shown steady growth over the years.
| FY | Total Revenue (Cr.) | Revenue from Depository Services (Cr.) | Contribution % |
|---|---|---|---|
| FY22 | 761.11 | 369.26 | 48.52% |
| FY23 | 1,021.93 | 409.14 | 40.03% |
| FY24 | 1,268.24 | 473.03 | 37.30% |
It has consistently rewarded investors with ₹20 crore in dividends annually over the past three years.
NSDL Payments Bank: A Hidden Gem
A major revenue contributor is NSDL Payments Bank Ltd (NPBL). Operating on a B2B model, NPBL focuses on financial inclusion and offers services like:
- Demand deposit acceptance
- Debit and prepaid cards
- Mobile-based remittance and recharge
- Insurance and mutual fund product distribution
In FY23, transactions via prepaid cards touched ₹7,386 crore, a figure that highlights its digital banking strength.
NSDL vs CDSL: Who’s Leading?
India has two depositories — NSDL and CDSL. While CDSL dominates in sheer number of demat accounts (14.65 Cr), NSDL leads in value. The average value of assets per demat account is ₹1.25 crore for NSDL, compared to ₹5 lakh for CDSL.
Other metrics where NSDL outshines:
- Number of issuers (64,535 vs 31,557)
- Value of assets under custody
- Number of active instruments
- Revenue per investor (₹130 vs ₹54.3)
However, CDSL does edge ahead with more depository participants (DPs).
Who’s Selling in the IPO?
This IPO will see major shareholders IDBI Bank and NSE diluting their stake to comply with SEBI’s 15% holding cap under D&P regulations. Here’s how it breaks down:
- IDBI Bank: Selling 22.22 million shares (owns 26.10%)
- NSE: Selling 18 million shares (owns 24%)
- Others: SBI, HDFC Bank, Union Bank, and SUUTI will also offload minor stakes
Risks and Regulatory Baggage
One concern is NSDL’s pending case involving Karvy Stock Broking, where it’s alleged that NSDL failed to enforce due diligence, allowing misuse of client securities. SEBI’s show-cause notice is still under review.
Other minor regulatory notices in the past have been resolved, but the overhang of past non-compliances may weigh on investor sentiment.
Link with Protean eGov Technologies
Interestingly, NSDL was once a subsidiary of Protean eGov Technologies, previously known as NSDL e-Governance. Though they now function independently post a 2012 demerger, operational connections still exist.
Final Thoughts
The NSDL IPO is more than just another public issue—it’s the listing of a foundational institution in India’s financial infrastructure. Despite minor regulatory overhangs, NSDL’s dominance in asset value, robust digital infrastructure, and innovation through NSDL Payments Bank make it a strong contender for long-term portfolios.
And while market giants like NSDL grab headlines, opportunities also lie beyond the listed space. If you’re looking to unlock hidden value in unlisted, delisted, or illiquid shares, platforms like Delistedstocks.in help investors discover and monetize such rare opportunities with expert guidance and best-in-market pricing.
Stay tuned as NSDL prepares for its much-anticipated debut—and don’t forget, sometimes the best investments aren’t always listed.
