India’s largest securities depository, National Securities Depository Limited (NSDL), has reported impressive financial results for the Q3 FY25. The company also received regulatory approval for its Initial Public Offering (IPO), marking an important milestone in its journey.
– NSDL’s net profit increased by 30% to ₹85.8 crore in Q3 FY25, compared to ₹66.09 crore in the same period last year.
– The company’s total income grew by 16.2% to ₹391.21 crore, up from ₹336.67 crore in Q3 FY24.
– Nine-Month Performance (April-December 2024):
- Net profit rose 32.6% to ₹259.82 crore.
- Total income increased 13.3% to ₹1,141.4 crore.
NSDL’s IPO
– In October 2024, SEBI approved NSDL’s IPO plan.
– Offer for Sale (OFS) Structure:
- The IPO will be entirely an Offer for Sale (OFS), meaning NSDL itself will not raise new funds.
- Existing shareholders like NSE, SBI, and HDFC Bank will sell a total of 5.72 crore shares.
Since NSDL will not issue new shares, it won’t receive any proceeds from the IPO – the money will go to the selling shareholders.
NSDL’s Market Leadership & Achievements
– India’s First Securities Depository: NSDL was the first company in India to provide dematerialization (holding securities in electronic form instead of physical certificates). It started this service in November 1996, following the Depositories Act of 1996.
– Massive Asset Holdings: By September 2024, NSDL held securities worth ₹500 lakh crore ($6 trillion) in custody, making it the largest depository in the country.
NSDL plays a crucial role in India’s financial markets, helping investors safely store and trade securities electronically.