NSDL Surges 30% in a Month, Boosted by IPO Activity and Unfreezing of Shares

Unlisted shares of National Securities Depository Ltd. (NSDL) have witnessed a sharp price increase in recent weeks. The rise is attributed to multiple catalysts, including IPO developments, easing of share transfer procedures, and a parallel rally in NSE shares.

NSDL Shares Surge Following Transfer Unfreezing

According to a report by NDTV Profit, from early May to early June, NSDL's unlisted share price has climbed by nearly 30%, rising from around ₹960–₹990 to ₹1,250 apiece. This surge coincides with a procedural change introduced on April 30, when NSDL began settling unlisted share trades via Central Depository Services (India) Ltd. (CDSL), eliminating the lengthy approval process that previously took several months.

With this shift, trades in NSDL shares now complete within one to two days, significantly improving liquidity and investor convenience. Brokers confirmed that the simplified mechanism has resulted in heightened market activity, drawing more buyers into the unlisted space.

Link Between NSE Rally and NSDL Momentum

Market participants suggest that the rally in NSDL shares is partly influenced by the strong performance of NSE in the unlisted market. NSE shares have jumped nearly 47% over the same period. The National Stock Exchange, which holds a 24% stake in NSDL, has attracted substantial investor interest ahead of its anticipated IPO.

As confidence builds in market infrastructure institutions (MIIs), investors appear to be re-rating NSDL alongside NSE. The positive sentiment has been fuelled by increased transparency in shareholding and improved transferability.

IPO Progress Adds to Positive Sentiment

NSDL recently filed an addendum to its draft red herring prospectus (DRHP) with SEBI, moving a step closer to its IPO. As a market infrastructure entity, NSDL requires special regulatory clearances before it can proceed with listing. The addendum included updates on the size of the issue and other disclosures, suggesting that the company is actively working towards launch readiness.

Industry observers note that such developments often result in a price rally in the unlisted market, especially when timelines become clearer.

NSDL Shareholding and Foreign Ownership Limits

As of the end of March, NSDL had no designated promoter group. Instead, the depository is backed by a broad institutional base, including:

• IDBI Bank: 26.1%
   
• NSE: 24%
   
• HDFC Bank: 7.9%
   
• Deutsche Bank and SBI: 5% each
   
• Other stakeholders: Citibank, Standard Chartered Bank, HSBC, Union Bank of India, Canara Bank, Bank of Baroda, Kotak Mahindra Bank, and Axis Bank. 

Foreign ownership is capped at 49%, with 23.2% currently utilised.

This diversified institutional backing adds to the company’s appeal in both unlisted and upcoming public markets.

Read More: NSDL Updates IPO Draft, Reduces Offer Size to 50.15 Million Shares!

Financial Performance in Q4 FY25

NSDL posted stable financials for the fourth quarter of FY25:

• Revenue: ₹364 crore, marginally up from ₹363 crore
   
• EBITDA: ₹91.2 crore, flat compared to ₹90.9 crore
   
• EBITDA Margin: Held steady at 25.1%
   
• Net Profit: Declined by 3% to ₹83.3 crore from ₹85.8 crore

While profits dipped slightly, operational metrics remained resilient, reflecting stable business fundamentals during a period of structural change.

Conclusion

The 30% surge in NSDL’s unlisted share price over one month has been driven by structural changes in share settlement, IPO preparation, and increased interest linked to NSE's performance. These developments have reinvigorated investor attention towards one of India’s key depositories, positioning NSDL at the centre of upcoming capital market activity.

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