NSDL IPO Subscribed Over 9x on Day 3: Check GMP, Subscription Status

Today, August 1, 2025, is the last day to apply for the National Securities Depository Limited (NSDL) IPO. It opened for subscription on July 30, 2025, with a price band of ₹760 to ₹800 per share. Following the huge demand for the IPO among investors, NSDL IPO has been subscribed more than 900% on day 3, with its GMP standing at ₹137 as of 1 PM, August 1, 2025, showing about a 17.12% premium, signaling positive momentum and investor interest. This blog aims to unpack NSDL’s business model, the IPO objectives, its operational strengths and risks, peer comparison, valuation insights, and the overall industry outlook. equipping investors with a clear and straightforward understanding to make informed decisions.

IPO Overview

• IPO Date: July 30 to August 1, 2025
• Total Issue Size: ₹4,011.60 crore
• Price Band: ₹760 to ₹800 per share
• Lot Size: 18 shares per lot
• Tentative Allotment Date: August 4, 2025
• Listing Date: August 6, 2025 (Tentative)
• Subscription Status: 9.45 times as of 1 PM, August 1, 2025.
• GMP: The GMP for NSDL IPO is ₹137, according to Chittorgarh.com (as of 1 PM, August 1, 2025).
  Disclaimer: GMP is an unofficial indicator and is subject to market volatility.

How Does NSDL Make Money?

National Securities Depository Limited, or NSDL, is a key company in India's financial world. It helps people hold and trade stocks and other investments without paper, having pioneered the dematerialization of securities in India. Through its sister companies, NSDL offers many services. NSDL Database Management Limited (NDML) provides computer-based solutions like e-governance and helping people open accounts online. NSDL Payments Bank Limited (NPBL) offers banking services such as easy-to-use digital accounts and ways to pay bills online.

NSDL is the biggest company of its kind in India. It holds the most investments for people and companies. Looking ahead, NSDL wants to keep growing and reach more customers. It plans to make its computer systems even better and offer more different services, especially in managing information and banking. For example, it launched a ‘YUva Plan’ to help young people open investment accounts. The company aims to make financial services simpler and more accessible for everyone.

Objectives of the IPO

• To facilitate the sale and transfer of up to 50.14 million existing shares by selling shareholders such as IDBI Bank, NSE, and others.
• To list the shares on the stock exchange to enhance NSDL’s market visibility and brand positioning.
• Note: The proceeds from this IPO accrue to selling shareholders, not to NSDL itself, meaning the company will not receive fresh capital from the offer.

Strengths:

• NSDL earns ₹156.8 per investor account, nearly 3 times more than its rival CDSL’s ₹55.44.
• The average assets under custody per demat account are ₹1.177 crore, over four times the industry average of ₹27.8 lakh, meaning NSDL serves wealthier investors.
• It holds about 69% market share in terms of the number of Issuers, which reflects the companies, both listed and unlisted, registered with NSDL for various services like annual custody fees and corporate action fees. It also manages 66% of the total value of shares settled in demat form, positioning it as India’s largest depository.

Risks:

• NSDL has received multiple regulatory warnings related to compliance and technical issues, which might affect operations or reputation if unresolved.
• Its payments bank business contributes half of its revenue but operates at a very low operating profit margin (1.08%) and low return on equity (1.26%), meaning it makes only ₹1.08 operating profit from ₹100 revenue and earns just ₹1.26 on ₹100 of investors.
• Heavy reliance on complex IT infrastructure makes it vulnerable to cyberattacks or system failures that could severely disrupt business.

Peer Comparison

• As per the RHP, NSDL makes ₹22.4 profit per ₹100 revenue while CDSL outperforms with ₹48.6 profit. CDSL also outperforms NSDL in profitability with a higher return on equity (29.9% vs. NSDL’s 17.11%).
• CDSL has a broader investor base with 15.9 crore demat accounts versus NSDL’s 4.05 crore as of June 2025, but NSDL holds more investor wealth with a custody value worth ₹511 lakh crore against CDSL’s ₹79 lakh crore, as of June 2025.
• NSDL generates significantly higher revenue per investor (₹156.8) in comparison to CDSL’s ₹55.44 per investor account.

Source: RHP, CDSL, NSDL | Data as of FY25 | *Data as of June 2025

IPO Valuation

At the upper price band of ₹800, NSDL trades at a price-to-earnings (P/E) ratio of approximately 46.6 times based on FY25 earnings, which is lower compared to CDSL’s P/E of 68 times. This suggests that NSDL is relatively more attractively valued. The price seems justified given NSDL’s steady revenue growth and the high asset values under custody, although its lower profitability margins compared to peers should be noted.

Industry Outlook

India’s capital markets have undergone a dramatic shift in the last decade. Demat accounts have grown nearly 9x from just 2.2 crore in FY14 to almost 19.2 crore by FY25. This sharp rise reflects stronger investor participation. For players like NSDL, this isn’t just tailwind, it’s a structural growth story. But the sector is evolving. New-age fintechs are coming up with more solutions and convenience for investors, from KYC to order execution. On the similar lines, SEBI is becoming strict on compliance, cybersecurity, and data protection rules.

Analyst View

NSDL is a core part of India’s financial plumbing, critical, deeply embedded, and trusted. It handles over ₹511 lakh crore in custody value, making it the clear leader by asset size. The company’s client mix is skewed toward higher-value accounts, giving it strong per-user revenue.

However, profitability is where NSDL lags behind CDSL. Despite higher revenue, NSDL’s margins and return ratios are lower, partly due to its banking services arm, which brings volume but at thinner spreads. Its P/E of 46.6 (at the upper band) is reasonable when benchmarked against CDSL, especially given NSDL’s wider role in capital markets.

For long-term investors, this IPO offers a bet on India’s financial deepening. But it’s not without risks: regulatory overhangs, tech disruptions, and the need to boost operational efficiency will be key things to watch. If NSDL can navigate these well, it has a solid runway ahead.

Other Upcoming IPOs to Watch

Wondering what’s next on the IPO track? These upcoming names have the market buzzing and could be headed to the bourses soon.

Note: These companies are either in the DRHP stage or expected to file soon.

How to Apply for an IPO on INDmoney?

1. Download the INDmoney app and complete your KYC to open an account.
2. Go to the INDstocks section and tap on IPO, or search for ‘IPO’.
3. Select your preferred IPO from the list of live IPOs.
4. View key details like price band, lot size, and dates, then tap ‘Apply Now’.
5. Choose the number of lots and place your order via UPI. Your funds will be blocked until the share allotment is finalized.

For a seamless application process, visit the INDmoney IPO page.

Disclaimer

Source: NSDL's RHP. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Please be informed that merely opening a trading and demat account will not guarantee investment in securities in the IPO. Investors are requested to do their own independent research and due diligence before investing in an IPO. Please read the SEBI-prescribed Combined Risk Disclosure Document prior to investing. This post is for general information and awareness purposes only and is nowhere to be considered as advice, recommendation, or solicitation of an offer to buy or sell, or subscribe for securities. INDstocks is acting as a distributor for non-broking products/services such as IPO, Mutual Fund, and Mutual Fund SIP. These are not exchange-traded products. All disputes with respect to the distribution activity would not have access to the Exchange investor redressal forum or the Arbitration mechanism. INDstocks Private Limited (formerly known as INDmoney Private Limited) does not provide any portfolio management services, nor is it an investment adviser. Logos above are the property of respective trademark owners, and by displaying them, INDstocks has no right, title, or interest in them. SEBI Stock Broking Registration No: INZ000305337, Trading and Clearing Member of NSE (90267, M70042) and BSE, BSE StarMF (6779), SEBI Depository Participant Reg. No. IN-DP-690-2022, Depository Participant ID: CDSL 12095500, Research Analyst Registration No. INH000018948 BSE RA Enlistment No. 6428.