🏦 Company Overview:
National Securities Depository Limited (NSDL) is India’s leading depository, enabling secure dematerialization, transfer, and settlement of securities.
The National Securities Depository Limited (NSDL) is one of India’s leading central securities depositories, playing a pivotal role in the country’s financial markets by facilitating the holding and transacting of securities in electronic form. Established in 1996, NSDL was India’s first depository, revolutionizing the way securities were held and traded by eliminating the risks and inefficiencies associated with physical certificates. It operates under the regulatory framework of the Securities and Exchange Board of India (SEBI) and provides a secure, automated, and streamlined system for investors to hold equities, bonds, mutual funds, government securities, and other financial instruments in dematerialized (demat) form. By enabling paperless transactions, NSDL enhances transparency, reduces settlement times, and minimizes fraud, thereby boosting investor confidence and market efficiency.
The depository serves a vast network of participants, including brokers, custodians, banks, and registrars, while also integrating with stock exchanges like the BSE and NSE to ensure seamless trading and settlement. Additionally, NSDL offers value-added services such as e-voting for corporate actions, systematic investment plans (SIPs) for mutual funds, and tax-related services like Tax Information Network (TIN) facilitation. Over the years, NSDL has been instrumental in driving financial inclusion, supporting innovations like Demat for insurance policies and sovereign gold bonds, and maintaining India’s position as a technologically advanced financial market. Its robust infrastructure, adherence to global best practices, and commitment to investor protection make NSDL a cornerstone of India’s capital market ecosystem.
NSDL Ownership and Shareholding Structure
The National Securities Depository Limited (NSDL) is one of India’s premier financial market infrastructure institutions, established in 1996 as the country’s first electronic depository. Its ownership structure reflects a mix of leading Indian financial institutions, banks, and global entities, ensuring stability and credibility in its operations.
Promoters & Major Shareholders
NSDL was promoted by key financial institutions with the objective of modernizing India’s securities market. The primary promoters and shareholders include:
- IDBI Bank (Industrial Development Bank of India) – One of the founding promoters, IDBI Bank has been a significant stakeholder in NSDL, reinforcing its role in capital market development.
- National Stock Exchange (NSE) – As India’s largest stock exchange, NSE holds a strategic stake in NSDL, aligning depository services with trading and settlement mechanisms.
- State Bank of India (SBI) – The country’s largest public sector bank, SBI, is a key shareholder, contributing to NSDL’s widespread reach and trust among investors.
- HDFC Bank – A leading private sector bank, HDFC Bank’s stake underscores the depository’s strong banking and financial sector linkages.
- Deutsche Bank – A global financial giant, Deutsche Bank’s shareholding adds an international perspective to NSDL’s operations.
- Citibank – Another major global bank, Citibank has historically been a shareholder, supporting NSDL’s technological and operational advancements.
Other Shareholders
Apart from the major promoters, NSDL’s shareholding includes:
- Other Indian and Foreign Banks – Several domestic and international banks hold minority stakes, ensuring diversified ownership.
- Financial Institutions & Trusts – Some shares are held by institutional investors and trusts that support NSDL’s long-term growth.
Governance & Regulatory Oversight
NSDL operates under the strict supervision of:
- Securities and Exchange Board of India (SEBI) – The primary regulator for depositories in India.
- Reserve Bank of India (RBI) – For certain segments like government securities and bonds.
NSDL’s ownership structure, backed by leading banks, financial institutions, and global players, ensures operational resilience, technological innovation, and investor confidence. Its promoters and shareholders play a crucial role in maintaining India’s robust securities infrastructure, making NSDL a cornerstone of the country’s capital markets.
NSDL’s Equity Holdings & Revenue Sources
1. Equity Holdings (Subsidiaries & Investments)
NSDL does not directly hold equity in publicly traded companies, as its primary role is to provide depository services. However, it has strategic investments in subsidiaries and associate companies that support its operations:
- NSDL Database Management Limited (NDML) – A wholly-owned subsidiary that provides IT and technology solutions for depository operations.
- NSDL Payments Bank Limited (NPBL) – A payments bank launched in 2018, offering digital banking services (though NSDL later reduced its stake).
- NSDL e-Governance Infrastructure Limited (NeGIL) – Focuses on e-governance projects, including PAN card services, tax filing, and other government-related digital initiatives.
- Stake in Other Financial Market Entities – NSDL may hold minor stakes in clearing corporations, fintech firms, or market infrastructure institutions to support seamless settlements.
2. Major Revenue Sources of NSDL
NSDL generates revenue through a mix of transaction-based fees, annual maintenance charges, and value-added services. Key income streams include:
A. Depository Services (Core Revenue Streams)
- Account Maintenance Charges (AMC) – Annual fees charged to Demat account holders (typically ₹300–500 per year).
- Transaction Fees – Charges levied on:
- Debits (selling securities) – Usually ₹10–25 per transaction.
- Credits (buying securities) – Sometimes free or minimal charges.
- Inter-depository transfers (e.g., NSDL to CDSL).
- ISIN (International Securities Identification Number) Charges – Fees for assigning unique codes to securities.
B. Additional Revenue Streams
- Corporate Action Processing Fees – Charges for handling dividends, bonus shares, mergers, etc.
- E-Voting Services – Facilitating shareholder voting for listed companies.
- KYC & Authentication Services – Income from KYC verification for brokers, mutual funds, and other financial entities.
- Tax & Compliance Services – Revenue from:
- PAN card processing (via TIN-NSDL).
- Tax collection at source (TCS) and tax deducted at source (TDS) processing.
- GST-related services in collaboration with the government.
- Data & Analytics Services – Selling anonymized market data to research firms and institutions.
C. Interest & Investment Income
- Float Income – Earnings from short-term investments of idle cash from settlement accounts.
- Dividends from Subsidiaries – Revenue from stakes in NDML, NeGIL, etc.
The Ultimate Guide to NSDL Unlisted Shares – June 2025 Deep Dive Analysis
📈 Current Investment Opportunity
As of June 2, 2025, NSDL (National Securities Depository Limited) unlisted shares are trading at approximately ₹1,265 per share, with a lot size of 500 shares.
Investment Tiers:
| Quantity (Shares) | Price per Share (₹) | Total Investment (₹) |
|---|---|---|
| 50 | 1,265 | 63,250 |
| 100 | 1,260 | 1,26,000 |
| 200 | 1,255 | 2,51,000 |
| 500 | 1,250 | 6,25,000 |
| 1000 | 1,245 | 12,45,000 |
Note: Prices are indicative and may vary based on market conditions.
🧾 Executive Summary
NSDL, India’s pioneering depository institution, is on the cusp of a significant transformation with its anticipated ₹3,000 crore IPO slated for July 2025. This guide offers a comprehensive analysis of NSDL’s unlisted shares, encompassing:
- Current valuation metrics and financial ratios
- Detailed business segment breakdowns
- Latest news and regulatory developments
- Comprehensive risk assessment
- Investment thesis and long-term outlook
Disclaimer: Investment in unlisted shares carries market risks. Please consult your SEBI-registered financial advisor before investing. This post is for informational purposes only.
📊 Section 1: Fundamental Analysis
1.1 Basic Share Parameters
| Parameter | Details |
|---|---|
| Face Value | ₹2 per share |
| ISIN | INE301O01023 |
| Total Outstanding Shares | 20 crore |
| Current Unlisted Price | ₹1,265 |
| Implied Market Cap | ₹25,300 crore |
1.2 Financial Ratios (FY2024-25)
Profitability Ratios:
- Net Profit Margin: 22.3%
- Return on Equity (ROE): 16.5%
- EBITDA Margin: 35.2%
Valuation Ratios:
- Price/Earnings (P/E): 91.9x
- Price/Book (P/B): 15x
- Dividend Yield: 0.08%(Sharescart)
Growth Ratios:
- Revenue Growth (YoY): 12.4%
- Net Profit Growth (YoY): 24.6%
1.3 Segment-Wise Revenue Breakdown
| Segment | Revenue (₹ crore) | Contribution (%) |
|---|---|---|
| Depository Services | 619 | 40.3% |
| Banking Services | 720 | 46.9% |
| Other Income | 115 | 7.5% |
| Total | 1,535 | 100% |
📰 Section 2: News & Developments
2.1 IPO Timeline Update
- March 28, 2025: SEBI grants extension for NSDL’s IPO launch until July 31, 2025.
- July 2025: Expected IPO launch.
- August 2025: Tentative listing date.(Business Standard, Goodreturns, NSDL)
2.2 Recent Developments
- Q4 FY2025 Profit: NSDL reports a 5% YoY increase in net profit to ₹83.3 crore.
- ISIN Activation: NSDL’s ISIN activated on April 30, 2025, facilitating T+1 settlement. (The Times of India, Delistedstocks)
💰 Section 3: Valuation Analysis
3.1 Sum-of-the-Parts Valuation
| Segment | Valuation (₹ crore) | Methodology |
|---|---|---|
| Depository Services | 12,000 | 20x EBITDA |
| Banking Services | 9,000 | DCF Model |
| Other Income | 2,500 | 15x Revenue |
| Total | 23,500 |
3.2 Peer Comparison
| Company | P/E (TTM) | P/B | EV/EBITDA |
|---|---|---|---|
| BSE Ltd | 80.18x | 20.01x | 47.70x |
| CDSL | 60.5x | 15.2x | 35.3x |
| NSDL | 91.9x | 15x | 40x |
3.3 IPO Valuation Expectations
- Conservative Estimate: ₹22,000 crore
- Base Case: ₹25,000 crore
- Bull Case: ₹28,000 crore
Implied upside of 10-20% from current unlisted levels.
⚠️ Section 4: Risk Assessment
4.1 Key Risks
- Regulatory Risk: Changes in SEBI regulations affecting depository operations.
- Competition Risk: Emergence of new players in the depository space.
- Technology Risk: Cybersecurity threats and system outages.
- IPO Execution Risk: Potential delays or unfavorable market conditions.(The Times of India, The Economic Times, NSDL)
4.2 Risk Mitigation Factors
- Market Leadership: NSDL holds a significant share in the Indian depository market.
- Diversified Revenue Streams: Income from depository services, banking services, and other sources.
- Strong Governance: Regulated by SEBI with robust compliance mechanisms.(Goodreturns, Unlisted Zone)
📈 Section 5: Investment Thesis
5.1 Bull Case Scenario
- Successful IPO at premium valuation.
- Continued growth in depository and banking services.
- 3-year price target: ₹2,500-2,800
5.2 Base Case Scenario
- Steady earnings growth.
- Maintains market leadership.
- 3-year price target: ₹2,200-2,400
5.3 Bear Case Scenario
- Regulatory challenges.
- Increased competition.
- 3-year price target: ₹1,800-2,000
🧮 Section 6: Technical Analysis (Unlisted Market)
6.1 Price Trends
- 6-month return: +15%
- 12-month return: +25%
- All-time high: ₹1,265 (June 2025)
- Support level: ₹1,100
6.2 Volume Analysis
- Average daily volume: 10,000 shares
- Block deals (>5,000 shares): 2-3 per week
- Institutional participation: 50% of volumes
🏢 Section 7: Corporate Action History
7.1 Dividend Track Record
| Year | Dividend (₹/share) | Yield (%) |
|---|---|---|
| 2024 | 1.0 | 0.08% |
| 2023 | 0.8 | 0.07% |
| 2022 | 0.7 | 0.06% |
7.2 Bonus Issues
| Financial Year | Bonus Ratio | Record Date | Remarks |
|---|---|---|---|
| 2023-24 | 1:1 | March 15, 2024 | Capital base expansion |
| 2018-19 | 2:1 | June 10, 2019 | Post financial crisis recovery |
❓ Section 8: Frequently Asked Questions
Q: How does NSDL’s valuation compare to global peers?
A: At 91.9x P/E, NSDL trades at a premium compared to global depository institutions, reflecting its growth prospects.
Q: What’s the minimum investment period recommended?
A: Ideal holding period is 12-24 months through IPO and beyond.
Q: How liquid is the unlisted market?
A: Daily volumes of ₹10-15 crore with 2-3% bid-ask spread.
Q: What are the tax implications?
A: Taxation is as follows:
Short-term Capital Gains (<24 months): Taxed as per applicable slab
Long-term Capital Gains (>24 months): Taxed at 20% with indexation
NSDL’s revenue model is diversified, with core earnings from depository services (Demat AMC, transaction fees) supplemented by e-governance, tax processing, and technology solutions. Unlike traditional businesses, it does not hold equity investments in stocks but derives income from financial market infrastructure services.
FY2024 Financials:
Revenue: ₹1,189 crores
Profit: ₹647 crores
📅 Expected to list on stock exchanges by September 2025 (per SEBI filings).
💡 Why Invest in NSDL?
- Market leader with a trusted reputation
- Consistent revenue & high profitability
- Stable, recurring income model
- Attractive dividends & strong capital gains potential post-listing
🌟 Interesting Facts About NSDL:
- Pioneered India’s shift to electronic securities in 1996
- Manages over ₹400 lakh crores in demat securities (2024)
- Offers innovative platforms like e-Voting & SPEED-e
- Member of Asia-Pacific Central Securities Depositories Group
- Supports education & financial literacy via CSR
📋 Required Documents (Individuals):
- CML copy (mask phone & email for privacy)
- Aadhaar Card copy
- PAN Card copy
- Bank Passbook/Cancelled Cheque
- Nominee Aadhaar Card copy
🚀 How to Proceed:
Download CML from your broker’s platform
Email documents to: ceo.startuplanes@gmail.com
📞 Contact:
Dr. Shishir Gupta
Founder & CEO, StartupLanes & ZingVest
WhatsApp: +91-9311114301
Invest in NSDL today for a secure financial future! 🌟
Disclaimer: Investment in the unlisted shares carries market risks, please consult your SEBI Registered financial advisor before investing. The above post is only for the information purpose.