NSDL IPO subscribed 5.03 times on day 2; here's a look at its strengths, risks, and financials from RHP

NSDL IPO has been subscribed 5.03 times on the second day of bidding on Thursday, July 31. The initial public offering will conclude on Friday, August 1.

The ₹4,011.6 crore initial share sale secured bids for 176,516,388 shares against 35,127,002 shares on offer, as per the consolidated data on the NSE website until 5 pm.

The category for Retail Individual Investors (RIIs) fetched 4.17 times subscription, while the quota for non-institutional investors received 11.08 times subscription. The portion for Qualified Institutional Buyers (QIBs) witnessed 1.96 times of booking.

The depository's public issue, with a price band of ₹760 to ₹800 per share, is exclusively an offer for sale (OFS) component of 5.01 crore shares. Under the OFS, the National Stock Exchange of India (NSE), HDFC Bank, State Bank of India (SBI), Union Bank of India, IDBI Bank, and Administrator of Specified Undertaking of the Unit Trust of India (SUUTI) are offloading shares.

Since the public offer is solely an OFS, the company will not get any proceeds from the issue.

Shares of NSDL will debut on the stock exchanges on August 6.

NSDL IPO: A look at its strengths from RHP

• NSDL is India's first and largest depository in terms of number of issuers, active instruments, market share in Demat value of settlement volume, and value of assets under custody as of March 2025, according to the CRISIL Report.
• The company has consistently invested in technology, allowing the development of a state-of-the-art depository system, serving diverse user groups like depository participants, registrars, issuers, transfer agents, and clearing corporations.
• It has robust IT infrastructure, a risk management framework and cybersecurity measures to ensure the safety and integrity of the depository system.
• The company has a stable revenue base with a significant proportion of recurring revenue. The revenue from annual fees and custody fees is considered a more stable and recurring source of revenue, as it is less dependent on the market cycle than revenue from transaction charges.

NSDL IPO's risk factors from RHP

• If the customers' preference shifts from investing and trading in securities, it could reduce demand for NSDL's services, which could affect its financial condition.
• The company's success depends on its ability to develop and introduce new products and services to the securities market through continued innovation and development of new products and services via technology-based solutions. Failure of these offerings can impact business.
• A major chunk of the company's business is transaction-based, in particular, delivery-based, and depends on trading activity. External factors affecting trading volume can impact financial condition.
• It relies on complex IT networks and systems to operate business. Any major system or network disruption due to a technical glitch or breach in security of IT systems could have a negative impact on its business and reputation.

NSDL IPO: Financials

NSDL posted a 24.57% increase in its net profit to ₹343.12 crore in the financial year 2025-26, compared to ₹275.44 crore a year back.

Its revenue from operations climbed 11.97% to ₹1,420.14 crore in FY25 as against ₹1,268.24 crore in FY24.