NSDL is coming up with an IPO consisting of an offer for sale. The existing shareholders of the company intend to sell 5,72,60,001 Equity Shares.
NSDL IPO – Important Details
| NSDL IPO Date | November 6, 2023 to November 8, 2023 |
| NSDL IPO Listing Date | November 13, 2023 |
| NSDL IPO Price | INR 752 to 792 per share |
| NSDL IPO Lot Size | 18 |
| NSDL IPO Total Issue Size | OFS for 5,72,60,001 Equity Shares. |
| NSDL IPO Basis of Allotment | November 13, 2023 |
| NSDL IPO Initiation of Refunds | November 15, 2023 |
| NSDL IPO Credit of Shares to Demat | November 16, 2023 |
| NSDL IPO Issue Type | Book Built Issue IPO |
| NSDL IPO Listing At | BSE, NSE |
NSDL IPO – Company Profile
NSDL is a SEBI-registered market infrastructure institution (“MII”) offering a wide range of products and services to the financial and securities markets in India. Following the introduction of the Depositories Act in 1996, the Company pioneered the dematerialization of securities in India in November 1996. As of March 31, 2023, NSDL is the largest depository in India in terms of the number of issuers, number of active instruments, market share in demat value of settlement volume, and value of assets held under custody.
NSDL IPO – Fundamental Analysis
Revenue Growth:
Revenue has shown a consistent upward trend over the three fiscal years, growing from ₹4,675.69 million to ₹10,219.88 million.
Profitability:
Profit After Tax (PAT) has also been increasing, albeit at a slower rate, from ₹1,885.53 million to ₹2,371.12 million.
Return on Net Worth (RoNW):
The RoNW has slightly decreased from 18.50% to 16.43%, indicating a marginal decline in efficiency in generating profits from equity.
Earnings Per Share (EPS):
The diluted EPS has increased from ₹9.43 to ₹11.74, which is a positive indicator of the company’s earning potential on a per-share basis.
Asset and Liability Management:
Total assets have been growing steadily, while liabilities have also increased but not at an alarming rate, indicating good asset and liability management.
Summary:
The financials of NSDL depict a strong growth trajectory in revenue and a steady increase in profitability. However, the slight decline in RoNW might warrant a closer look. Investing in an IPO involves risks and should be based on a comprehensive analysis of the company’s financials, the industry it operates in, and the broader economic environment. It’s advisable to consult with a financial advisor to understand the risks and rewards better before making an investment decision in the IPO. The missing NAV per Equity Share data is a crucial piece of information that would help in making a more informed decision.
NSDL IPO Financial Information
| Particular | As at 31 March 2021 | As at 31 March 2022 | As at 31 March 2023 |
| Revenue (₹ in Million) | 4,675.69 | 7,611.09 | 10,219.88 |
| Equity (₹ in Million) | 10,192.95 | 12,116.19 | 14,288.61 |
| Expenses (₹ in Million) | 2,795.42 | 5,416.86 | 7,899.35 |
| Profit and Loss After Tax (₹ in Million) | 1,885.53 | 2,123.24 | 2,371.12 |
| RoNW (%) | 18.50% | 17.55% | 16.43% |
| Diluted EPS only (₹) | 9.43 | 10.63 | 11.74 |
| NAV per Equity Share (₹) | |||
| Total Assets (in million) | 15,040.06 | 16,927.47 | 20,934.75 |
| Total Liabilities (in million) | 4,847.11 | 4,811.28 | 6,646.14 |
NSDL IPO Peer Comparison
NSDL has a higher total income than Central Depository Services Limited. Despite lower RoNW, NSDL has competitive EPS. Central Depository, with a higher RoNW and NAV per share, might have better equity efficiency, reflecting a stronger market position.
| Company | Total Income (₹ in million) | Face Value per Equity Share (₹) | P/E | EPS (Basic) (₹) | EPS (Diluted) (₹) | RoNW (%) | NAV per Equity Share (Basic) (₹) |
| NSDL | 10,998.14 | 2 | NA | 11.74 | 11.74 | 16.43% | 71.44 |
| Central Depository Services Limited | 6,209.35 | 10 | 45.13 | 26.41 | 26.41 | 21.95% | 120.30 |
NSDL IPO Objective
NSDL’s IPO is an offer for sale by existing shareholders, with no proceeds going to the company. The objective is to leverage listing benefits like enhanced visibility, brand image, and providing a public market for its shares in India.
NSDL IPO Risks And Challenges
NSDL’s IPO risks include a potential shift in investor preferences away from securities, affecting demand for services, and technology obsolescence, where failure to innovate or successfully launch new tech-based services could adversely impact the business.
- New investment avenues: If there is a shift in investor preferences away from investing and trading in securities to other avenues, it could reduce demand for our services and adversely affect our business, financial condition, and results of operations.
- Technology Obsolescence: Failure to expand the service offerings through continued innovation and development of new products and services through technology-based solutions or the failure of these new service offerings may hurt the business.
NSDL IPO- Industry & Market Potential
The Indian capital markets have witnessed growth at a very fast pace since Financial Year 2017 till Financial Year 2023. The market capitalization of shares listed on National Stock Exchange (“NSE”) grew at 14% CAGR during March 2017 to March 2023. The number of companies traded on BSE and NSE (Cash Segments) increased from 4,613 in Financial Year 2017 to 6,466 in Financial Year 2023. The total demat accounts increased from 27.85 million in March 2017 to 114.50 million in March 2023 growing at 26.57% CAGR during the period.
The increase in participation was propelled by a multitude of factors including increasing retail investor participation driven by digitalization with higher adoption of mobile and digital investing, financial awareness, increasing participation in IPO subscriptions and the need to invest capital in an asset class yielding high returns amidst a low-interest environment.
Going forward, CRISIL MI&A Research expects the trend of increasing retail participation in the capital markets to continue considering the increasing internet penetration, financial awareness, the young demographic, and the advent of several new age fin-tech brokers or discount brokers that have revolutionized the industry with their low-cost digital business model.
NSDL IPO – Type of Offer
NSDL offer consists of an offer for sale. The existing shareholders of the company intend to sell 5,72,60,001 Equity Shares. The price of the offer is not yet disclosed by the company.
Following is the details of the selling shareholder
| Selling Shareholder | Number of shares offered for sale |
| IDBI Bank Limited | Up to 22,220,000 Equity Shares |
| National Stock Exchange of India Limited | Up to 18,000,001 Equity Shares |
| Union Bank of India | Up to 5,625,000 Equity Shares |
| State Bank of India | Up to 4,000,000 Equity Shares |
| HDFC Bank Limited (SS) | Up to 4,000,000 Equity Shares |
NSDL IPO Offer Size
NSDL is coming up with an IPO consisting of an offer for sale. The existing shareholders of the company intend to sell 5,72,60,001 Equity Shares.
NSDL IPO Allotment Structure
The IPO allotment structure for NSDL is planned as follows:
- Qualified Institutional Buyers (QIB): As per SEBI regulations, 50% of the shares offered through the IPO will be reserved for Qualified Institutional Buyers. These include entities such as banks, mutual funds, and insurance companies.
- Non-Institutional Investors (NII): 15% of the shares will be reserved for Non-Institutional Investors. These typically include corporate bodies or individuals investing more than Rs. 2 lakhs.
- Retail Individual Investors (RII): The remaining 35% of the shares will be allotted to Retail Individual Investors. These individual investors apply for shares with a total value of less than Rs. 2 lakhs.
A portion of the issue is also reserved for the eligible employees.
How to apply for a NSDL IPO through Alice Blue?
To apply for the NSDL IPO through Alice Blue, you would typically follow these steps:
- Open a Demat and Trading Account: If you don’t have one already, you would need to open a Demat and trading account with Alice Blue.
- Check for IPO Details: Once your account is active, you can check for the NSDL IPO details in the IPO section of the Alice Blue platform.
- Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
- Submit the Application: Confirm all your details and submit your application.
You can apply for NSDL IPO at Alice Blue in just a few clicks!
Check Allotment Status: Post the allotment process, you can check the allotment status to see if you have received any shares.
Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.
How to Check NSDL IPO Allotment Status on Alice Blue?
Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:
Log in to your Alice Blue Account: You can do this through the Alice Blue website or their trading app.
- Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.
- Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.
- Select the NSDL IPO: If you have applied for multiple IPOs, there might be a dropdown menu or a list where you can select the IPO you are interested in. Select the NSDL IPO.
- Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.
If you face any issues, it’s recommended to contact Alice Blue’s customer support for detailed assistance.
Apart from Alice Blue, there are other ways to check the allotment status of the NSDL IPO:
- Registrar’s Website: Visit the website of Link Intime India Private Limited, the registrar of the NSDL IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN and application number or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status.
- NSE and BSE: You can also check the allotment status on the official websites of the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE). You would need your application number and PAN to check the status.
Please note that the allotment status will only be available after the allotment process has been completed, a few days after the IPO window closes.
NSDL IPO Offer Registrar
The registrar for the NSDL IPO is Link Intime India Private Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.
Contact information for the registrar:
Link Intime India Private Limited
C-101, 1st Floor, 247 Park
L.B.S. Marg, Vikhroli West
Mumbai – 400 083, Maharashtra
Phone: +91 810 811 4949
Email: [email protected]
Website: www.linkintime.co.in
NSDL IPO FAQs
The allotment date is November 13, 2023.
The price band is not yet announced by the company.
NSDL is coming up with an IPO consisting of an offer for sale. The existing shareholders of the company intend to sell 5,72,60,001 Equity Shares.
The listing date is November 13, 2023.
