National Securities Depository Ltd’s (NSDL) ₹4,000-crore initial public offering was fully subscribed within hours of opening on Wednesday, as investors rushed to back the country’s largest depository amid a surge in retail participation in financial markets.
Investor enthusiasm is being driven by a retail investment boom, with demat accounts expanding at a compound annual growth rate of 21.9 percent since fiscal 2014, reaching 19 crore as of March 2025.
NSDL commands around 86 percent of India's securities depository market and is one of only two licensed players. Shares of its smaller rival, Central Depository Services Ltd, have surged nearly twelve-fold since their market debut in 2017.
The IPO is an offer for sale, with IDBI Bank and the National Stock Exchange reducing their stakes to comply with the 15 percent ownership cap mandated for market infrastructure institutions such as depositories.
One of India’s largest public offerings this year, the NSDL issue raised ₹2,000 crore in its anchor round on Tuesday from marquee investors including Life Insurance Corporation of India and US-based Capital International.
Shares were allotted at the upper end of the price band of ₹760 to ₹800. The issue will close on August 1.
Retail and non-institutional investor portions were fully subscribed, while qualified institutional buyers had subscribed to 72 percent of their allocated shares.
Analysts said the IPO was fairly priced. “Given NSDL’s strong market position, high entry barriers, and long-term growth tailwinds from India’s digital and capital market expansion, we assign a ‘subscribe’ rating for long-term investors,” Angel One said in a note.
