National Securities Depository Limited (NSDL) is India’s first and largest depository, established in 1996 to facilitate the dematerialization of securities and ensure efficient settlement of trades. Over the years, NSDL has played a pivotal role in modernizing India’s financial markets by providing electronic securities depository services. As of March 2025, NSDL is preparing for a significant milestone: launching its Initial Public Offering (IPO).
NSDL’s Upcoming ₹3,000 Crore IPO
IPO Overview
NSDL is expediting its plans to launch a ₹3,000 crore IPO, aiming to go public by April 2025. This move comes amid a slowdown in the Indian IPO market, highlighting NSDL’s confidence in its robust financial performance and market position.
Offer for Sale (OFS) Details
The IPO will be entirely an Offer for Sale (OFS), where existing shareholders will divest their stakes. Key stakeholders participating in the OFS include:
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National Stock Exchange (NSE): Holds a 24% stake in NSDL.
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IDBI Bank: One of the prominent shareholders.
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HDFC Bank: Another major stakeholder.
These institutions aim to monetize their investments through the upcoming public issue.
Regulatory Approvals and Timeline
NSDL secured in-principle approval for the IPO in September 2024, valid until September 2025. However, the company is accelerating the process to meet regulatory deadlines and capitalize on favorable market conditions. A senior NSDL official stated, "Our dates are expiring next month. We are rushing against time to get things done fast."
NSDL’s Investment in Open Network for Digital Commerce (ONDC)
In a strategic move to diversify its portfolio, NSDL has acquired a 5.6% stake in the Open Network for Digital Commerce (ONDC) by investing ₹10 crore under the private placement route. ONDC aims to democratize digital commerce by providing a platform for small retailers to compete with established e-commerce giants. NSDL’s investment aligns with its vision to support innovative digital initiatives in India’s financial ecosystem.
Leadership Representation in International Securities Services Association (ISSA)
Highlighting its prominence in the global securities market, NSDL’s Managing Director and Chief Executive Officer, Vijay Chandok, has been appointed to the Board of the International Securities Services Association (ISSA). This appointment underscores NSDL’s commitment to contributing to global discussions on securities services and adopting international best practices.
NSDL’s Milestone Achievement
Demonstrating its leadership in the securities depository sector, NSDL recently reached a historic milestone by holding assets worth $6 trillion in custody. This achievement reflects the trust and confidence that investors and market participants place in NSDL’s services.
NSDL continues to play a crucial role in India’s financial infrastructure, facilitating seamless and secure transactions in the securities market. The upcoming ₹3,000 crore IPO marks a significant step in NSDL’s journey, offering investors an opportunity to participate in its growth story. Additionally, strategic investments like the stake in ONDC and representation in international bodies like ISSA highlight NSDL’s commitment to innovation and global collaboration. As NSDL embarks on this new chapter, it remains dedicated to enhancing the efficiency and transparency of India’s financial markets.