
The IPO-bound National Securities Depository (NSDL) has been hogging limelight in the unlisted market on account of multiple triggers. The stock has soared nearly 40 per cent in the pre-IPO market over the past two months, largely after an easier process of unlisted share transfer came into the effect.
The transfer process of unlisted shares was simplified in April 2025 with a new ISIN number, which reduced the share transfer process to 1-2 days from 4-6 months. With this, NSDL became available for freely transfer from one demat account to another within a shorter timeframe. Since the one-year IPO window for NSDL ends on July 31, the unlisted market is hopeful the IPO would be launched soon.
According to dealers active in the pre-IPO market, where unlisted shares are bought and sold, shares of NSDL are being quoting in the range of Rs 1,200-1,250 apiece. In April, the stock was trading at Rs 900 apiece. From those levels, NSDL has seen a sharp up move of 40 per cent within a span of two months.
Dealers active in the unlisted market cited a few other reasons that addded to the sharp uprise in the NSDL shares.
They included the retail frenzy, rally in unlisted shares of NSE (a leading shareholder), NSDL's sound financial record in the duopoly market and an addendum in its DRHP that resulted in lowering of the issue size.
Jasbir Singh, Founder of Pune-based Meera Associates said retail participation in NSDL is increasing rapidly following the unfreezing of free transfer of its shares. "The new ISIN has led to free transfer and trade of NSDL shares, triggering a rise in its demand. The sharp rise in NSE's unlisted shares also had some rub-off effect on NSDL shares among retailers." he said.
Sandip Ginodia, CEO of Kolkata-based Altius Investech said that NSDL forms a duopoly in the market depository landscape NSDL. NSDL belongs to an assured business and assured growth sector, which adds to the optimism for it. "As the financial asset market expands in India, NSDL is bound to grow. Besides this, there are no issues with corporate management," Ginodia adds.
Adding to this, Hitesh Dharawat of Mumbai-based Dharawat Securities said that the validity for NSDL's IPO approval shall lapse on July 31, 2025. The company shall launch its IPO before that. "Besides IPO buzz, the recent addendum to its DRHP has trimmed the IPO size, resulting in lower chances of allotment in the IPO, which is also adding to the demand of NSDL shares in unlisted space."
NSDL had recently filed an addendum to the DRHP with the market regulator Sebi in its quest to launch the primary stake sale, while it trimmed the IPO size to 50.15 million shares from 57.26 million as announced earlier. IDBI Bank Ltd, National Stock Exchange and Union Bank of India are the biggest shareholders in NSDL, who shall be offloading their stake in the company.
IDBI Bank is eyeing to sell 2,22,20,000 equity shares, NSE will offload 1,80,00,001 equity shares; and Union Bank of India shall offer 5,01,45,001 shares in NSDL IPO. ICICI Securities, Axis Capital, HDFC Securities & Capital Market India, IDBI Capital, SBI Capital Market and Motilal Oswal Investment Advisors are managing the IPO, while MUFG Intime India is the registrar for the issue.
Market participants said that CDSL has an upper hand in demat account count, while NSDL tops in terms of assets held under custody. Ginodia and Singh believe that the current price of NSDL in the unlisted market is slightly stretched, while Dharawat said that it can be a wealth creator in the long run after listing. An investor can buy and hold this stock around or Rs 1,000 level.
NSDL reported a net profit of Rs 83.3 crore with a revenue of Rs 364 crore for the quarter ended on March 31, 2025. The company clicked a Ebitda of Rs 91.2 crore with an ebitda margin of 25.1 per cent. For the entire financial year 2024-25, NSDL reported net profit of Rs 343 crore with a revenue of Rs 1,420 crore. Ebitda came in at Rs 375 crore for the year.