NSDL Unlisted Shares Skyrocket 50% as Investors Eye Upcoming IPO
Over the last two months, the price of National Securities Depository Limited (NSDL) unlisted shares has surged dramatically by around 50%. This sharp rise comes amid growing excitement and speculation about the company’s forthcoming Initial Public Offering (IPO), which many investors are eagerly anticipating.
What’s Fueling the Momentum?
A key driver behind this upward trend is the issuance of a new International Securities Identification Number (ISIN) for NSDL’s unlisted shares. This development has made it far easier for shareholders to transfer and trade their holdings, boosting liquidity in a segment that was traditionally less accessible.
Thanks to these improvements, more retail investors have jumped into the market, pushing the price up from about ₹800-850 in early April to nearly ₹1,225 today. This growing demand reflects confidence in NSDL’s future prospects once it officially lists on the stock exchange.
NSDL’s Position in the Market
NSDL operates as one of India’s two main securities depositories, alongside Central Depository Services Ltd (CDSL). While CDSL has a larger number of demat accounts, NSDL commands a higher volume of assets under custody, highlighting its vital role in the country’s financial ecosystem.
Market watchers note that NSDL’s dominant position and consistent financial performance make it an attractive candidate for investors. However, some advise caution as current valuations may have already priced in optimistic expectations related to the IPO.
Financial Health at a Glance
Looking at recent financial results, NSDL posted ₹1,420 crore in revenue for the fiscal year ending March 31, 2025, marking a 12% increase from the previous year. The company’s net profit rose impressively by nearly 25% to ₹343 crore, supported by a 30% jump in EBITDA, showcasing improved operational efficiencies.
These figures underscore the company’s solid fundamentals as it prepares to transition to a public entity.
Details on the Upcoming IPO
The IPO will be conducted via an Offer for Sale, meaning existing shareholders will sell a portion of their stakes instead of new shares being issued. Major shareholders planning to sell include IDBI Bank, National Stock Exchange (NSE), and Union Bank of India.
Specifically, IDBI Bank is expected to divest over 22 million shares, NSE around 18 million, and Union Bank more than 50 million. Other significant sellers include HDFC Bank, State Bank of India (SBI), and MUFG Intime India.
Leading investment banks such as ICICI Securities, Axis Capital, and Motilal Oswal are managing the IPO process, with MUFG Intime India appointed as registrar.
What Lies Ahead for Investors?
As the IPO date approaches, enthusiasm around NSDL’s unlisted shares is likely to sustain momentum. Nevertheless, the ultimate success of the offering will depend on critical factors such as pricing, market conditions, and investor appetite.
While NSDL’s market position and financial strength provide a promising outlook, potential investors should keep in mind the inherent risks involved with IPOs and market volatility.
Summing Up
The notable 50% surge in NSDL’s unlisted shares reflects mounting investor optimism ahead of the company’s public listing. With the Indian capital markets evolving and broadening, NSDL’s IPO could mark a significant milestone, drawing interest from a wide spectrum of investors.
The image added is for representation purposes only
