National Securities Depository Limited is a SEBI registered market infrastructure institution ('MII') offering a wide range of products and services to the financial and securities markets in India. Following the introduction of the Depositories Act in 1996, through the Company, they pioneered the dematerialization of securities in India in November 1996. As of March 31, 2025, they are the largest depository in India in terms of number of issuers, number of active instruments, market sharein demat value of settlement volume and value of assets held under custody. Further, as of March 31, 2025, they have a network of 65,391 depository participants' service centres as compared to 18,918 such centres with CDSL. As a depository, they provide a robust depository framework that enables market participants to participate in the financial and securities markets in India. They also play a central role in developing products and services that will continue to address the growing needs of the financial services industry in India. Using innovative and flexible technology systems, NSDL works to support investors, brokers, issuers and other market participants in the Indian capital markets and aims at ensuring the safety and soundness of Indian securities market by developing settlement solutions that increase efficiency, minimize risk and reduce costs. The depository facilitates securities to be held in digital form by investors through accounts known as 'Demat Accounts' held with them through depository participants. This includes securities held in dematerialized form with various asset classes namely equities (listed equity and unlisted equity), preference shares, warrants, funds (mutual funds, REITs, InvITs and AIFs), debt instruments (corporate debt, commercial paper, certificate of deposit, passthrough certificate, security receipts, government securities, sovereign gold bonds, municipal debt, treasury bill) and electronic gold receipts. As part of the depository business, they operate a centralized digital book-keeping system that facilitates the holders of securities to hold and transfer their securities in electronic form and enables settlement solutions in an efficient and cost-effective manner. They also facilitate and maintain complete records of the ownership of securities held in dematerialised form with them on behalf of the issuer entity. They provide depository services to investors, issuers, depository participants, financial institutions, stockbrokers, custodians, clearing corporations and other market intermediaries and have established an ecosystem for these entities to integrate with the systems. As per financial performance, NSDL has posted total income / net profits of Rs 1,099.81 Cr / 234.81 Cr (FY23), Rs 1,365.70 Cr / Rs 275.44 Cr (FY24) and Rs 1,535.19 Cr / 343.12 Cr (FY25). So as per previous financials data, company has shown good growth. Company has an average EPS of Rs 15.13 and average RoNW of 17.11% for last three fiscals. Issue is priced at a P/BV of 7.98 as per NAV of Rs 100.27/- as on 31.03.25. If we attribute latest earnings of FY23, FY24 and FY25 on equity post issue, then asking price is at a P/E of around 68.14, 58.09 and 46.63 respectively. As per RHP, comparison between listed peers is shown in above table. On BRLM's front, six lead managers are associated with this IPO, and have handled 164 IPOs in last three fiscals. ( As on 25.07.25 ) As per financials, NSDL has shown good growth, RoNW is 44.85% and P/E is 68.14, 58.09 and 46.63 respectively as per FY23, FY24 and FY25 earnings. When compared with listed peers, issue looks fully priced. Company is a SEBI registered market infrastructure institution ('MII') offering a wide range of products and services to the financial and securities markets in India, its monopoly kind of business segment. So, we give SUBSCRIBE rating for this IPO. Readers must consult a qualified financial advisor prior to making any actual investment decisions.
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