NSDL GMP IPO Day 1: 38% Subscribed, Retail 51% – Should You Apply?

We start with firm facts. The NSDL IPO began accepting public bids on July 30, 2025. It is a pure offer‑for‑sale, with existing shareholders putting up 5.01 crore shares, worth about ₹4,011 crore. The IPO has a price range set at ₹760 to ₹800 per share.

By midday on Day 1, the IPO had caught 38 % overall subscription. The retail segment alone saw 51 % booking. At the same time, the grey market premium (GMP) stood at around ₹126, signalling an implied listing price near ₹926, about 15.75 % above ₹800.

We look at data only. No opinions here. We explain what each figure means. We use clear language. And we lay out the facts so the reader can understand the full story.

IPO Key Details

• The issue is a pure OFS, meaning NSDL itself gets no fresh capital.
• Total shares offered: 5.01 crore, to raise around ₹4,011–₹4,012 crore.
• Price band: ₹760–₹800 per share.
• The minimum lot size is 18 shares for retail investors, which amounts to about ₹14,400 at the upper price band of ₹800.
• The IPO opens July 30, closes August 1, 2025, with likely listing on August 5 or 6 on BSE and NSE.

Day 1 Subscription Data

• By around noon, total subscription was 0.79 (or 79 %) of shares offered.
• Retail segment: ~0.87subscribed (87 %).
• NIIs: ~0.97 booked.
• QIBs: only 0.50, showing limited participation from institutional buyers.
• Early live reports from NSE indicate 0.82 overall, with retail at 0.92, NII at 1.03, QIB at 0.50x, and employee portion at 1.58.

Grey Market Premium (GMP) Update

• GMP ranged mostly between ₹135 and ₹140, or about a 16–17 % premium over the ₹800 IPO price.
• On Day 1 itself, GMP quoted at ₹125–₹126, implying a listing price of near ₹926, about a 15.7 % premium.
• Some earlier reports even mentioned higher grey–market levels of ₹136–₹138 (~17 %) before open.
• GMP is unofficial. It signals what some investors expect on listing day, not guaranteed outcomes.

Company Overview

• NSDL became the first depository in India to be established following the Depositories Act of 1996. It handles dematerialization of securities, settlement, and custody across equity, debt, mutual funds, REITs, and more.
• Its network spans over 99 % of PIN codes in India, with clients in 186 countries.
• NSDL earns steady revenue through issuer and transaction charges, offering predictable annuity‑like income.

Industry Landscape

•  Two major players, NSDL and CDSL, dominate India’s depository market.
• NSDL leads on institutional assets, while CDSL has more retail accounts via fintech partners.
• Demat account penetration is still low, around 13.4 % in FY25, leaving room for growth in the sector.

Financial Performance

• In FY 2025, NSDL’s revenue increased by about 12% to ₹1,535 crore, while its profit after tax climbed nearly 24.5% to reach ₹343 crore.
• Its EBITDA margin stood at 34–35 % and net margin ~22 %.
• At the upper price band, NSDL is valued at around 47 times its FY25 earnings, whereas competitor CDSL trades near 65 times P/E, supported by stronger retail expansion and margins of about 48%.

Strengths of NSDL

• NSDL offers institutional depth and large assets under custody.
• It has a wide network reach and a trusted brand in India’s financial system.
• Its revenue base is steady and less volatile.
• It serves major clients like mutual funds, insurance firms, banks, and pension funds across India and abroad.

Key Risks and Challenges

• NSDL’s revenues depend heavily on capital market activity. Low market turnover may reduce its earnings.
• Competition from CDSL and emerging fintech players could pressure retail share.
• Regulatory changes, especially in charges or fees, could affect income.

Valuation Metrics

The IPO values NSDL at roughly ₹16,000 crore, which works out to a price‑to‑earnings (P/E) ratio of about 47x based on FY25 earnings.

In comparison, CDSL has a market value of about ₹32,000 crore and is priced at nearly 65 times trailing P/E, backed by higher margins and greater retail participation.

The IPO price band is set about 22 % below NSDL’s unlisted market level of roughly ₹1,025 per share, offering a noticeable discount compared to previous private valuations.

Conclusion

The NSDL GMP IPO opened with notable numbers on its first day. The IPO recorded 38% overall subscription, while the retail segment accounted for 51% participation. Grey market activity placed the premium between ₹125 and ₹136, equal to about 15.7–17% above the upper price band of ₹800. The IPO is valued between ₹4,011 crore and ₹4,012 crore, with a price range fixed at ₹760 to ₹800 per share. NSDL’s position as a major institutional player, along with its steady financial performance and predictable income model, adds weight to its fundamentals. The IPO is also priced at a discount compared with its unlisted market value and peers in the depository sector. As the issue progresses, subscription trends over the remaining days will provide a clearer picture of overall demand.

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This content is for informational purposes only and not financial advice. Always conduct your research.