National Securities Depository Ltd (NSDL) is set to launch its initial public offering (IPO) on July 30, aiming to raise ₹4,011.60 crore from the primary market. NSDL IPO is entirely an offer for sale (OFS) of 5.01 crore equity shares, sold at an IPO price band of ₹760 to ₹800 per share.
NSDL IPO will close on August 1, and the equity shares are proposed to be listed on the BSE, where they will compete with rival depository Central Depository Services (India) Ltd (CDSL).
As key players in India’s capital market infrastructure, NSDL and CDSL operate in the depository services segment, competing across metrics such as the number of depository participants (DPs), instruments processed, innovation, and customer reach. Here’s a comparative analysis of the two:
Business Overview
NSDL remains the largest depository in India in terms of the number of issuers, active instruments, market share in demat settlement volumes, and total assets under custody as of March 31, 2025.
Market Share: NSDL commanded a 73.04% share in unlisted equity companies, 66.03% in dematerialised share settlements, and 65.27% in active instruments in FY25.
Network: NSDL had 65,391 service centres through its DPs compared to CDSL’s 18,918.
Demat Accounts: NSDL reported 3.95 crore demat accounts with 294 registered DPs. In contrast, CDSL became the first depository to cross 15.29 crore demat accounts as of March 31, 2025, driven largely by retail participation through fintech and broker platforms.
Issuer Growth: The number of companies whose securities are held in demat form grew at a CAGR of 20.6% for NSDL (from 17,835 in FY17 to 79,773 in FY25) and 17.5% for CDSL (from 9,887 to 35,922 during the same period).
While NSDL leads in terms of institutional depth and asset value, CDSL dominates in retail reach and account volumes.
Financial Performance
CDSL reported a consolidated net profit of ₹526 crore in FY25, a 25% YoY growth, with revenue rising 32% YoY to ₹1,199 crore.
NSDL posted a net profit of ₹343.12 crore in FY25, growing 24.5% from ₹275.45 crore in FY24. Revenue increased 12.4% YoY to ₹1,535.19 crore.
CDSL exhibits higher profitability margins (~48%) compared to NSDL (~22%), owing to its leaner operational model and stronger retail-driven scalability.
Valuation and Investment Perspective
NSDL is eyeing a valuation of approximately ₹16,000 crore through its IPO, translating to a P/E multiple of ~47x on FY25 earnings. In comparison, CDSL trades at a market cap of ~ ₹32,000 crore, with a trailing P/E of around 65x, supported by its aggressive retail expansion and robust financial performance.
According to Mohit Gulati, CIO and Managing Partner, ITI Growth Opportunities Fund, both NSDL and CDSL have cemented themselves as core infrastructure in India’s capital markets, yet their current valuations and risk-reward profiles differ meaningfully.
“From a risk-reward perspective, CDSL’s continued growth momentum and the expanding Indian demat universe offer robust rewards, but the rich valuation increases downside risk if execution falters. NSDL, with its established institutional base, offers relatively lower short-term momentum but a more attractive entry point at IPO — potentially a better risk-adjusted bet for investors looking to participate in India’s long-term capital market growth story,” Gulati said.
The right choice hinges on investor risk appetite: CDSL for near-term outperformance at higher risk, NSDL for value-conscious investors seeking steady compounding as the ecosystem deepens, Gulati added.
Anirudh Garg, Fund Manager and Partner, INVasset PMS noted that CDSL is the undisputed king of retail, hosting over 14.6 crore demat accounts — nearly 4x that of NSDL — driven by fintechs and broker-led onboarding.
In contrast, NSDL controls the big-ticket institutional pie: nearly ₹464 lakh crore in assets under custody versus CDSL’s ₹71 lakh crore, backed by mutual funds, insurers, pension funds, and sovereign accounts. NSDL has the depth; CDSL has the breadth.
“CDSL’s FY25 EPS stands at ₹25.2 with a ~65x P/E, while NSDL IPO is priced around ₹17 EPS and 44–47x P/E. Network strength also diverges — CDSL has wider reach with 581 DPs and fintech-first DNA, while NSDL leans on institutional integration across 296 DPs and deeper issuer partnerships. One is a retail volume play; the other is an institutional value moat. Both are irreplaceable to India’s equity ecosystem — your choice depends on whether you’re betting on scale or strategic depth,” Garg said.
Should you apply for NSDL IPO?
Brokerage firm Anand Rathi has recommended a “Subscribe” rating on the NSDL IPO.
“At the upper price band, NSDL is valued at a P/E of 46.6x based on FY25 earnings, with a post-issue market capitalisation of ₹16,000 crore and a Return on Net Worth (RoNW) of 17.1%. We believe the offer is fairly priced,” the brokerage said in its IPO note.
Conclusion
Both NSDL and CDSL are critical pillars of India’s capital market ecosystem, each catering to different segments — NSDL with its institutional dominance and CDSL with its retail outreach. Investors seeking long-term participation in India’s equity infrastructure may find NSDL’s IPO a compelling, value-oriented opportunity. Meanwhile, CDSL continues to reward investors betting on retail growth and technological integration, albeit at a higher valuation premium.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
