India’s capital market is buzzing with anticipation as National Securities Depository Limited (NSDL) gears up to open IPO orders from investors as early as next week. According to reliable sources, NSDL’s long-awaited initial public offering (IPO) could raise as much as $500 million, signaling a renewed surge in investor enthusiasm and a strong comeback for Indian equity markets.
This move could not only reshape the IPO landscape in India but also open up new direct investment avenues for retail and institutional investors alike.
NSDL IPO Launch: What We Know So Far?
According to reports from individuals familiar with the matter, NSDL’s IPO could be launched in the last week of July 2025, with investor order collection beginning immediately after. The expected IPO size has grown from earlier estimates of $400 million in June to $500 million, highlighting strong investor interest.
However, the final size and timeline of the offering are still under deliberation and may change based on market conditions.
“The IPO will be a pure offer-for-sale,” say sources. This means NSDL itself will not receive any funds from the IPO proceeds. Instead, existing stakeholders like:
- IDBI Bank Ltd.
- National Stock Exchange (NSE)
- State Bank of India (SBI)
will be divesting a portion of their holdings in this issue.
Who’s Managing the NSDL IPO?
The public offering is being arranged by a consortium of top-tier financial institutions, including:
- ICICI Securities Ltd.
- Axis Capital Ltd.
- HSBC Holdings Plc
- IDBI Capital Markets & Securities Ltd.
- Motilal Oswal Investment Advisors Ltd.
- SBI Capital Markets Ltd.
These book-running lead managers (BRLMs) will handle the underwriting, pricing, and institutional bidding processes.
NSDL’s Role in the Indian Financial System
Founded in 1996, NSDL is India’s first and largest depository by asset value. It plays a critical role in the Indian capital markets, holding over ₹51.1 trillion in securities for more than 40 million investor accounts.
Its robust infrastructure enables:
- Electronic trading and dematerialization of shares
- Safe custody and seamless transfer of securities
- Support for IPO allotments and corporate actions
With such a vast depository network, NSDL’s IPO is expected to draw significant participation, especially as investor confidence rebounds.
Why This IPO is a Big Deal
1. Revival of India’s IPO Market
India’s IPO market had a muted start earlier in the year. But with foreign capital inflows, a stock market rally, and aggressive monetary easing by the Reserve Bank of India (RBI), investor sentiment has shifted positively. The NSDL IPO is part of a broader resurgence in public offerings.
2. Trust in Infrastructure-Backed Entities
As a SEBI-regulated depository, NSDL enjoys high credibility. This gives retail and institutional investors added confidence in participating in its IPO.
3. No Fresh Equity Dilution
Since this IPO is a pure offer-for-sale, it doesn’t dilute NSDL’s equity base. That’s a plus for valuation stability and long-term investor interest.
What This Means for Investors?
Opportunity to Invest in a Market Backbone
Investing in NSDL is like investing in the plumbing of India’s capital markets. It’s a stable, revenue-generating infrastructure business — not subject to the volatility of daily trading like brokers.
Transparent Governance
The involvement of highly regulated banks and institutions (like SBI and NSE) adds a layer of governance and compliance credibility.
Potential for Long-Term Growth
With India’s rising retail investor base, demat account penetration, and surge in IPO activity, NSDL’s core services will remain in demand, ensuring consistent revenue flows.
Timeline and Expectations
- IPO Opening: Expected by late July 2025
- Investor Orders: May begin next week via NSDL’s demat interface
- Allotment & Listing: To follow SEBI-regulated timelines post closure
- Use of Proceeds: Entirely for divestment; NSDL receives no direct capital
Stay tuned for the to get details on NSDL unlisted share price, lot size, and reservation quotas for retail, QIB, and NII investors.
A Quick Recap of NSDL’s Milestones
| Feature | Details |
| Founded | 1996 |
| Total Investor Accounts | 40+ million |
| Securities Under Custody | ₹51.1+ trillion |
| Key Shareholders | NSE, SBI, IDBI Bank |
| IPO Size | Estimated $500 million |
| Issue Type | Offer for Sale (OFS) |
| Lead Managers | ICICI Sec, Axis Cap, HSBC, etc. |
Final Thoughts
The upcoming NSDL IPO is more than just a divestment; it’s a milestone moment for India’s capital markets. As the infrastructure backbone of the country’s securities ecosystem, NSDL offers investors a rare opportunity to own a stake in a foundational financial institution.
Whether you’re a retail investor looking to diversify or an institution seeking long-term stability, this IPO is worth watching closely.
Frequently Asked Questions (FAQs)
Q1. What is the expected size of the NSDL IPO?
The IPO may raise up to $500 million, as per the latest estimates.
Q2. Will NSDL receive any proceeds from the IPO?
No. It is a pure offer-for-sale, with proceeds going to existing investors like NSE, IDBI Bank, and SBI.
Q3. Who are the lead managers for this IPO?
ICICI Securities, Axis Capital, HSBC, Motilal Oswal, IDBI Capital, and SBI Capital Markets are managing the deal.
Q4. Can retail investors apply through NSDL directly?
Yes. NSDL is also planning to enable IPO applications directly from its demat portal, offering retail investors seamless access.
Q5. What is the current market sentiment around IPOs in India?
Investor confidence is growing, with strong foreign inflows and a bullish Indian stock market supporting new IPOs.
Q6. How can I prepare to apply for the NSDL IPO?
Ensure your demat account is KYC-verified, UPI is active, and check NSDL updates regularly for launch announcements.
Q7. When will the IPO open for bidding?
Investor order collection may start as early as next week, with public bidding to follow shortly thereafter.