National Securities Depository Ltd’s $458-million IPO was fully subscribed within hours of its Wednesday launch as investors rushed to back its leading position in India’s rapidly growing securities market.
The country’s largest depository is drawing strong investor interest amid a retail investing boom, with demat accounts growing at a 21.9% compound annual rate since fiscal 2014 to 192.4 million by March 2025, according to its offer document.
NSDL holds around 86% of India’s securities depository market, where it operates as one of two licensed players. Shares of smaller rival Central Depository Services have surged nearly twelve-fold since their 2017 debut.
The IPO is an offer for sale, with IDBI Bank and the National Stock Exchange paring stakes to meet the 15% regulatory ownership cap for market infrastructure institutions such as depositories.
The offering, among India’s largest this year, raised $137.35 million in its anchor round on Tuesday from marquee investors including Life Insurance Corporation of India and U.S.-based Capital International.
Shares were allotted at the upper end of the price band of 760 rupees to 800 rupees. The issue will close on August 1.
The portions reserved for retail and non-institutional investors were fully subscribed, while qualified institutional buyers had bid for 72% of the shares allotted.
Three analysts said NSDL’s issue was fairly priced at 47x of FY25 earnings.
“Given its strong market position, high entry barriers, and long-term growth tailwinds from India’s digital and capital market expansion, we assign a ‘subscribe’ rating for long-term investors,” Angel One said in a note.
NSDL filed draft papers for the IPO in July 2023, but the process was paused by the regulator in August and cleared only in October 2024, paving the way for the listing.
Reuters
