Synopsis: NSDL's IPO is proving to be a jackpot for early investors like SBI and IDBI, turning dirt-cheap shares into a fortune. With listing gains expected, investors are watching closely as regulatory stakes unlock massive profits.
The upcoming ?4,000 crore initial public offering (IPO) of National Securities Depository Limited (NSDL) is making headlines for more than just its scale. It’s turning out to be one of the most lucrative exits for early institutional investors in recent memory, with returns as high as 39,900%.
State Bank of India (SBI) is selling 40 lakh shares it purchased at ?2 each. At the IPO’s upper price band of ?800, this translates into a whopping ?320 crore, multiplying SBI’s modest ?80 lakh investment nearly 400 times.
Similarly, IDBI Bank will offload 2.22 crore shares also bought at ?2 each, netting ?1,776 crore in proceeds. The math? Another 39,900% return. Founding investor National Stock Exchange (NSE), which bought its shares at ?12.28, will clock ?1,418 crore, a 6,415% return.
Even smaller players are cashing in. Union Bank of India, holding just 5 lakh shares bought at ?5.20, will turn its ?26 lakh outlay into ?40 crore, marking over 15,000% gains.
However, these aren’t just opportunistic exits. SEBI regulations require depositories like NSDL to ensure no single entity holds more than 15%, triggering the need for stake dilution from existing shareholders like IDBI and NSE who each held more than 24%.
The IPO, entirely an offer for sale (OFS), opens on July 30, with anchor bidding on July 29. The price band is set at ?760–800 per share, and the grey market premium (GMP) is hovering around ?145–155, indicating a potential 18% listing gain.
Valuation-wise, NSDL seems attractive compared to its listed rival CDSL. At ?800 per share, NSDL is priced at a P/E of 46.6, versus CDSL’s 66.6. The fundamentals support this optimism—Q3 FY25 results showed a 29.8% jump in net profit to ?85.8 crore and 16.2% revenue growth to ?391.2 crore.
Allotments are expected by August 4, and listing is likely on August 6. Investors eyeing long-term value in a core capital markets infrastructure firm are watching closely.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Readers are advised to consult financial experts before making investment decisions.
