If you’ve ever bought a stock using apps like Zerodha, Groww or Upstox, chances are your shares are sitting safely with NSDL. You may not have heard the name often, but it’s one of the most important institutions in India’s financial system.
And now, NSDL is coming out with its first-ever IPO.
So what is National Securities Depository Limited, why is it launching an IPO now and should you even care? Here’s everything explained in plain and simple language.
What is NSDL?
NSDL stands for National Securities Depository Limited. It was set up in 1996, at a time when shares were still exchanged in paper format.
Before National Securities Depository Limited, if you bought shares, you would receive physical certificates. This process was slow and full of risks like loss, theft or fake documents.
NSDL helped change all that. It introduced dematerialisation, which means converting paper shares into digital format. Today, National Securities Depository Limited holds shares, mutual funds, ETFs and bonds for millions of investors in India.
Why Is NSDL Important?
Think of National Securities Depository Limited like a bank, but instead of money, it stores your stocks and investments safely.
- It works behind the scenes every time you buy or sell shares online.
- It keeps your investments in digital form, so they don’t get lost or damaged.
- It makes sure transfers happen smoothly when you sell or buy securities.
It works with stockbrokers, banks, and big institutions, and follows rules set by SEBI (the stock market regulator in India).
Quick Overview of the NSDL IPO
| Item | Details |
| Company Name | National Securities Depository Ltd |
| Issue Type | Offer for Sale (OFS) only |
| Issue Size | ₹4011.6 crore |
| Face Value | ₹2 per share |
| Price Band | ₹760 – ₹800 |
| IPO Dates | 30 Jul 2025 – 01 Aug 2025 |
| Listing Exchange | NSE and BSE |
Note: These numbers are based on the Draft Red Herring Prospectus (DRHP) filed with SEBI. The final dates and price will be announced closer to the IPO launch.
What Does “Offer for Sale” Mean?
The IPO of National Securities Depository Limited is a 100% Offer for Sale. This means that no new shares are being created. Instead, existing shareholders (like IDBI Bank, NSE and others) are selling a part of their stake to the public.
So the money raised will go to these existing shareholders, not to NSDL itself.
This is common for companies that are already doing well financially and do not need fresh capital for expansion.
How Big Is NSDL?
- Over 3 crore demat accounts are active with National Securities Depository Limited.
- It holds securities worth more than ₹450 lakh crore.
- It has a network of over 270 Depository Participants (brokers and agents who help you open and manage demat accounts).
- NSDL is present in 99% of Indian pin codes through its partners.
Even if you’re not aware of it, National Securities Depository Limited likely holds your shares if you opened a demat account before 2015 or if your broker is linked with them.
How Does NSDL Earn Money?
National Securities Depository Limited has a stable business model. It earns money through:
- Annual charges paid by investors to maintain demat accounts.
- Transaction charges when shares are bought or sold.
- KYC services, Aadhaar verification, e-signatures.
- Corporate services like e-voting and digital documentation.
It’s not a high-growth business, but it is steady, reliable and has good profit margins.
Financial Performance of NSDL
| Year | Revenue (₹ Crore) | Net Profit (₹ Crore) |
| FY 2023 | 1022 | 235 |
| FY 2024 | 1268 | 275 |
| FY 2025 | 1420 | 343 |
This shows that the company is growing steadily and is profitable. It does not rely on advertising or flashy products. It earns by providing core infrastructure to the financial system.
What Is NSDL’s Moat or Advantage?
In simple words, a moat is what protects a business from competition. National Securities Depository Limited has a strong moat:
- Trust: It has been operating for nearly 30 years without major problems. Big institutions and the government trust it.
- Regulation: It’s one of only two depositories in India (the other is CDSL). New competitors cannot easily enter this space.
- Sticky Customers: Once someone opens a demat account with NSDL, they usually stay. Switching is time-consuming and requires approvals.
- Scale: National Securities Depository Limited handles lakhs of crores worth of securities. That scale itself becomes a strength.
Who Are the Existing Shareholders?
| Shareholder | % Stake Before IPO |
| IDBI Bank | 26.10% |
| National Stock Exchange | 24.00% |
| Union Bank of India | 5.90% |
| HDFC Bank | 5.00% |
| Canara Bank | 5.00% |
| State Bank of India | 5.00% |
These shareholders will sell part of their holdings in the IPO.
What Are the Risks?
Even though National Securities Depository Limited is a strong company, it’s good to know the risks too:
- Its income depends on how active the stock market is. If trading volumes fall, income can reduce.
- It operates under strict SEBI regulations. Any change in rules can affect its services.
- It has competition from CDSL, which leads in the number of retail accounts.
Should You Apply for the NSDL IPO?
This IPO is not about hype or quick listing gains. It is about owning a piece of India’s financial infrastructure. National Securities Depository Limited is not a flashy tech company, but it plays a key role in the background.
If you’re looking for long-term stability and want to invest in companies that are essential to the functioning of the stock market, this is one to watch.
Always read the final documents and check with a financial advisor before investing.
Final Thoughts: More Than Just an IPO
National Securities Depository Limited has always stayed behind the scenes, quietly making sure that when you click “buy” on a stock, the entire process runs smoothly. Now, for the first time, it’s stepping into the spotlight with this IPO. And that makes it a great moment to pause and look at how the market actually works.
Because understanding the market isn’t just about picking stocks or watching price charts. It’s about knowing the system you’re investing in. Companies like National Securities Depository Limited are the reason that the system runs with trust and transparency.
Understanding how such systems work is what separates casual traders from informed investors. That’s where structured learning really helps. If you’re serious about mastering the stock market and taking control of your financial future, The WallStreet School’s Stock Market Wizard Course can help you with the tools and confidence to do it right. Our sessions break things down in a practical way, so you’re not just guessing or following tips but you’re learning how markets actually work.
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