India’s Largest Depository, NSDL, Prepares for ₹3,000 Crore IPO as SEBI Deadline Looms

India’s IPO market has slowed in recent weeks, but National Securities Depository Ltd (NSDL) is moving swiftly to debut on the stock exchange. The country’s largest securities depository is expediting its much-anticipated ₹3,000 crore initial public offering (IPO), potentially launching as early as next month.

The IPO is an offer for sale (OFS), meaning no fresh shares will be issued. Instead, 6 existing shareholders, including National Stock Exchange (NSE), IDBI Bank, and HDFC Bank, will dilute their holdings. Notably, NSE holds a 24% stake in NSDL.

Expected Timeline for NSDL IPO 

NSDL received in-principle approval for the IPO in September 2024, with validity extending until September 2025. However, the depository is now in a race against time to complete regulatory approvals and launch the offering by April 2025, according to a news report. 

A key driver behind this accelerated timeline is compliance with SEBI’s shareholding norms. The market regulator mandates a diversified ownership structure for market infrastructure institutions (MIIs) such as NSDL, prompting the company to move forward with its listing.

Financial Performance of NSDL 

While the broader market has witnessed a correction, affecting IPO activity, NSDL’s financials remain robust. In Q3 FY25, the company reported:

• 29.82% year-on-year rise in consolidated net profit to ₹85.8 crore.
• 16.2% increase in total income, reaching ₹391.21 crore.

These strong financials position NSDL as a significant player in the market, making its IPO one of the most anticipated listings of the year.

Conclusion

As NSDL pushes ahead with its IPO, investors will closely monitor how the offering aligns with shifting market conditions and regulatory requirements. With an expected listing in April, all eyes are on how the depository navigates these challenges in the coming weeks.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.