NSDL IPO price band at ₹760-800, 30% below grey market valuation

After months of anticipation, the National Securities Depository Ltd (NSDL) has finally lifted the veil on its much-awaited initial public offering (IPO). On Friday, the country’s largest securities depository announced the price band for its upcoming public issue, setting it at ₹760-800 per share. The offering, which is completely an offer for sale by existing shareholders, aims to raise ₹4,012 crore at the upper end of the range. At this price, the company is eyeing a market capitalisation of around ₹16,000 crore.

What has really turned heads on Dalal Street, however, is that at higher end of the price band, the share is at a near 30% compared to NSDL’s grey market valuation of ₹1,150. 

However, NSDL is not the only one to have seen a drop in its valuation. HDB Financial Services, which raised ₹12,500 crore in the country’s largest IPO so far this year, also witnessed a similar trend. This can be largely attributed to the market meltdown, which is prompting companies to adjust their valuations to attract investors in a volatile environment.

According to data shared by IPO Central, a primary market research platform, ahead of the IPO price announcement, NSDL shares were trading in the range of ₹1,100-1,150 in the unlisted market, after hitting a peak of ₹1,200 in early June.

Anil Sharma, co-founder of IPOCentral, noted that prices in the unlisted market are generally not aligned with fundamentals and are often driven by euphoria and manipulation. “A lack of liquidity and the dominance of a few large players further result in inefficient price discovery. This often pushes stock prices in the unlisted space beyond their fundamentals, keeping them elevated for extended periods,” he told Fortune India. For example, even as the benchmark indices fell in March-April, it had little impact on NSDL prices in the unlisted market. “When the rubber of the unlisted market meets the road of IPO, such high valuations simply can't sustain. IPO-bound companies are now doing well to identify such gaps and pricing their offerings at reasonable levels,” said Sharma.

The NSDL IPO is an offer for sale (OFS) of 5.01 crore shares by existing shareholders, including IDBI Bank, NSE, SBI, HDFC Bank, Union Bank of India, and others. As there is no fresh issue component, the company will not receive any proceeds from the offering.

IDBI Bank is offloading up to 2.22 crore shares, while the National Stock Exchange (NSE) plans to sell up to 1.80 crore shares. Additionally, State Bank of India (SBI), HDFC Bank, and Union Bank of India will sell 40 lakh, 20 lakh, and 5 lakh shares, respectively. The administrator of the specified undertaking of the Unit Trust of India (SUUTI) will offload up to 34.15 lakh shares. Collectively, these six entities currently hold 14.54 crore shares, representing 72.70% of NSDL’s total equity base.

NSDL initially filed its draft red herring prospectus (DRHP) in July 2023, followed by an addendum in May 2025, which revised the issue size from 5.72 crore to 5.01 crore shares. The capital market regulator granted approval for the company to complete its listing process by August 14, 2025.

The NSDL IPO will open on July 30 and close on August 1, with share allotment expected by August 4, 2025. The tentative listing date on both BSE and NSE is August 6, 2025.

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