NSDL IPO: Fair valuations, strong moat

NSDL has maintained a dominant market share in terms of the value of shares held in demat accounts

- Mayur Bhalerao

National Securities Depository Ltd (NSDL), India's first depository and a vital pillar of capital market infrastructure, is set to launch its ₹4,012-crore initial public offering on Wednesday. The offer-for-sale (OFS), priced between ₹760 and ₹800 per share, marks a milestone for the 28-year-old institution.

Founded in 1996 and registered with the Securities and Exchange Board of India as a market infrastructure institution, NSDL provides core services, such as demat account maintenance, transaction settlements, record-keeping, and corporate actions. It also has two subsidiaries: NSDL Payments Bank and NSDL Database Management Ltd.

As of March, NSDL serviced 99.99% of foreign portfolio investor (FPI) assets in demat form and held 86.8% of the country's total demat value. Its reach spans 99.34% of Indian pin codes and 194 countries.

Yet, NSDL is confronted by a shifting landscape—marked by rapid retail participation, fintech disruption, and increasing competition from its younger rival, Central Depository Services (India) Ltd (CDSL).