NSDL IPO turns ₹2 shares into ₹800 windfall; SBI, IDBI to pocket 39,900% returns

A ₹2-per-share bet is now being sold at ₹800. As NSDL launches its ₹4,000 crore IPO, early institutional backers like SBI, IDBI Bank, and NSE are sitting on staggering gains—some as high as 39,900%—offloading shares once bought for the price of a candy.

As the National Securities Depository Limited (NSDL) gears up for its IPO on July 30, its long-time institutional investors are unlocking windfalls most startups can only dream of. Entirely an offer for sale (OFS), the IPO allows shareholders to cash out on investments made decades ago—many at double-digit share prices.

State Bank of India is offloading 40 lakh shares purchased at ₹2 each. At the upper IPO price band of ₹800, SBI will pocket ₹320 crore—a return of 39,900% on its original ₹80 lakh investment.

IDBI Bank’s numbers are equally jaw-dropping. Selling 2.22 crore shares bought at ₹2, IDBI will earn ₹1,776 crore, again delivering a 39,900% return.

NSE, one of NSDL’s founding institutions, will sell 1.8 crore shares acquired at an average ₹12.28 per share, booking ₹1,418 crore—a return of 6,415%.

Even relatively smaller shareholders like Union Bank of India, holding 5 lakh shares bought at ₹5.20, will convert a ₹26 lakh outlay into ₹40 crore, marking over 15,000% returns.

These exits, however, aren't purely opportunistic. Regulatory caps mandate shareholders like IDBI and NSE—who hold over 24% each—to reduce their stake below the SEBI-prescribed 15% ceiling. NSDL confirmed the OFS is designed to comply with the SEBI D&P Regulations.

Other institutional winners include:

• SUUTI: Turning a ₹68.3 lakh stake into ₹273.2 crore (bought at ₹2/share)
• HDFC Bank: Despite a higher entry price of ₹108.29, will still make ₹139 crore—a 638% return

The IPO has a price band of ₹760–800, with grey market premiums (GMP) hovering around ₹145–155, suggesting an 18% listing gain.

Compared to CDSL, NSDL’s valuation looks attractive. At ₹800, it’s priced at a P/E of 46.6, while CDSL trades at 66.6.

NSDL’s Q3 FY25 results showed a 29.8% rise in net profit to ₹85.8 crore and a 16.2% increase in revenue to ₹391.2 crore, highlighting strong fundamentals despite broader market volatility.

Allotments are expected by August 4, with listing likely on August 6. Anchor investors can bid on July 29.