NSDL IPO: Grey market on fire as issue date announced; check GMP, likely price band & more

National Securities Depository (NSDL) shall be launching its much waited initial public offering (IPO) next week, that is, Wednesday, July 30. The first official communication about the issue has sparked the interest for the issue in the unofficial market, fueling the fire for it in the grey market. The issue can be subscribed until Friday, August 01.

The IPO of NSDL is entirely comprises of an offer-for-sale (OFS) of up to 5,01,45,001 equity shares, where IDBI Bank, offloading up to 2,22,20,000 shares, and the National Stock Exchange of India, offering up to 1,80,00,001 shares. Each share in this offering has a face value of Rs 2. They own 26.01 per cent and 24 per cent stake in NSDL, respectively.

Significant selling shareholders in the IPO besides IDBI and the NSE include the State Bank of India, HDFC Bank, and the Administrator of the specified undertaking of the Unit Trust of India, each contributing substantial equity stakes to the offer.

Last heard, shares of NSDL were commanding a grey market premium (GMP) of Rs 165-170 apeice. However, the price band for the issue has not been formally announced but the reported issue size of Rs 3,500-4,000 crore indicate that the shares may be sold in the range of Rs 700-800 apeice.

The ISIN for unlisted shares of NSDL were frozen last week, which means that the shares could not be transferred or traded until the listing. According to the dealers, who trade in pre-IPO market, the stock exchanged hands in the range of Rs 850-900 apiece in the unlisted market.

Sandip Ginodia, CEO at Kolkata-based Altius Investech said that NSDL is a part of leading player, forming a duopoly with CDSL in this space. "The IPO-bound company has a strong hold on institutional accounts, and price band is likely to come around Rs 750-800 per share, considering the last trading price," he said.

Hitesh Dharawat, CEO of Mumbai-based Dharawat Securities expects the price band to be around Rs 700-750 for this much anticipated IPO. "Unlisted shares were put on freeze week and the information was communicated through the mail to the shareholders."

Retail investors will have access to 35 per cent of the IPO allocation, with a reservation for eligible NSDL employees. The lead managers are ICICI Securities, Axis Capital, IDBI Capital Markets & Securities, Motilal Oswal Investment Advisors, and SBI Capital Markets. NSDL targets a listing on both the BSE and NSE, with a tentative debut date set for August 06, 2025.

NSDL reported a net profit of Rs 343.1 crore on a revenue of Rs 1,535.1 crore for the fiscal year 2024-25. In the previous fiscal year, NSDL reported a net profit of Rs 275.4 crore on a revenue of Rs 1,365.7 crore. In other news, NSDL's subsidiary, NSDL Payment Bank, has acquired the status of a scheduled commercial bank from the Reserve Bank of India.

SEBI regulations necessitate that no entity holds more than a 15 per cent stake in any market infrastructure institution. The company has been granted an extension by SEBI to complete its listing by August 14, 2025, following an earlier extension in April. This timeline adjustment is crucial for meeting regulatory compliance and strategic market positioning.