NSDL IPO: Opens 30 July 2025. Are your Funds ready?

The Indian stock market showed resilience on July 29, 2025, with the Nifty 50 closing at 24,821.10, up 140.20 points (0.57%), and the Sensex at 81,349.98, gaining 458.96 points (0.57%). Amid this recovery, the much-anticipated National Securities Depository Limited (NSDL) IPO is set to open tomorrow, July 30, 2025, generating significant buzz among investors. Here's a quick look at NSDL's IPO and its relevance in today’s market context.

NSDL IPO Overview

NSDL, India’s largest securities depository, is launching a ₹4,011.60 crore IPO, entirely an Offer for Sale (OFS) of 5.01 crore equity shares. The price band is set at ₹760–₹800 per share, with a minimum lot size of 18 shares (₹13,680 for retail investors). The IPO opens on July 30 and closes on August 1, with allotment expected by August 4 and listing on BSE and NSE on August 6. Major shareholders, including IDBI Bank, NSE, SBI, and HDFC Bank, are offloading stakes, aligning with SEBI’s directive to reduce holdings below 15% by October 2025.

Market Context and Investor Sentiment

Today’s market recovery was driven by pharma and realty sectors, with stocks like Waaree Energies (+4.5%) and Torrent Pharma (+3.2%) leading gains. However, FII selling of ₹2,100 crore and a 7% rise in India VIX to 12.06 indicate volatility, especially with the July F&O expiry and US Federal Reserve meeting looming. The Nifty’s bullish engulfing pattern above the 100-day EMA (24,589) suggests potential upside, but resistance at 25,000 remains critical. This backdrop sets the stage for NSDL’s IPO, with its grey market premium (GMP) at ₹137, signaling a potential 16% listing gain.

Why NSDL IPO Matters

NSDL, a SEBI-registered Market Infrastructure Institution (MII) since 1996, manages 39.45 million demat accounts across 99.34% of India’s pin codes and 194 countries as of FY25. Its revenue grew from ₹1,021.99 crore in FY23 to ₹1,420.15 crore in FY25, with PAT rising from ₹234.81 crore to ₹343.12 crore. With zero debt and 20% recurring revenue, NSDL offers stability in a volatile market. Its dominance in high-value securities and unlisted space (53,169 companies vs. CDSL’s 21,295) makes it a compelling long-term investment. However, competition from CDSL and dependence on market volumes pose risks.

Investment Outlook

The NSDL IPO 2025 is attractively priced at a P/E of 40–46x, lower than peers like CDSL (67.4x) and CAMS (49.4x), offering growth potential. Investors should consider its stable revenue model and critical role in India’s financial infrastructure. However, with market volatility and regulatory scrutiny, thorough due diligence is advised. Consult a financial advisor and review the RHP before applying. Stay tuned for subscription updates as the IPO opens tomorrow.

Disclaimer: Investments in securities markets are subject to market risks. Read all related documents carefully before investing.