India’s premier and largest securities depository, National Securities Depository Limited (NSDL), is set to roll out its much-awaited initial public offering (IPO) worth ₹3,000 crore next month. According to a senior NSDL official, the organization is racing against time to meet crucial deadlines. “Our dates are expiring next month. We are rushing against time to get things done fast. We will try to launch the IPO before that,” the official said.

IPO Timeline and Regulatory Approvals

NSDL initially submitted its draft red herring prospectus (DRHP) in July 2023. The Securities and Exchange Board of India (SEBI) granted in-principle approval in September 2024, which remains valid until September 2025. Despite this, as a market infrastructure institution (MII), NSDL must secure additional clearances, some of which are nearing expiration. This urgency has prompted the company to expedite the IPO launch process.

IPO Structure and Stakeholder Participation

The upcoming IPO will be entirely an offer for sale (OFS) comprising 5.72 crore equity shares. Prominent stakeholders such as IDBI Bank Limited, the National Stock Exchange (NSE), State Bank of India (SBI), HDFC Bank, and Union Bank of India will offload their shares during this offering. The IPO presents an opportunity for investors to gain exposure to one of India’s most critical financial market infrastructure institutions.

Strong Financial Performance in Q3 FY25

NSDL showcased robust financial growth in the third quarter of FY25. The company reported a consolidated net profit of ₹85.8 crore, marking a significant 29.82% jump from ₹66.09 crore recorded during the same period the previous year. Additionally, total income rose by 16.2% to ₹391.21 crore in Q3 FY25, compared to ₹336.67 crore in the corresponding quarter of FY24.

Conclusion

With its impressive financial performance and pivotal role in India’s financial ecosystem, NSDL’s upcoming ₹3,000 crore IPO is expected to draw substantial investor interest. The IPO, structured entirely as an OFS, will allow key institutional stakeholders to reduce their holdings while providing investors with a chance to invest in a vital player in the Indian securities market.

Disclaimer: This article is intended solely for educational purposes. The securities and investments mentioned here are not to be considered as investment recommendations.