National Securities Depository Limited (NSDL) is a leading depository in India, playing a key role in digitizing and securing securities transactions. With its market dominance, NSDL has now entered the pre-IPO market, allowing investors to buy shares before its public listing.
NSDL Pre-IPO Price and Market Trends
The current pre-IPO price of NSDL shares is in the range of 900-1200 per share. Since these shares are traded in the unlisted market, prices fluctuate based on demand and supply.
Key Points to Consider:
- Price Varies Across Platforms: Different platforms offer different price quotes.
- High Demand: Due to NSDL’s strong financials, pre-IPO shares are seeing significant interest from investors.
- Buy with Caution: Since pre-IPO stocks carry risks, ensure thorough due diligence before investing.
National Securities Depository Limited (NSDL) is India's first and largest depository, playing a crucial role in digitizing the country’s financial markets. Established in 1996, NSDL revolutionized securities trading by introducing a paperless settlement system, reducing the risk of fraud, loss, and delays.
NSDL: Business Structure and Functions
NSDL operates as a depository regulated by the Securities and Exchange Board of India (SEBI), ensuring the secure holding and transfer of securities. With a market share of 86.83% in securities custody and a robust technological framework, NSDL provides financial security to millions of investors.
Key Functions of NSDL
Dematerialization & Rematerialization – Converts physical securities into digital form and vice versa.
Trade Settlement– Ensures the secure and efficient settlement of securities transactions.
Pledging & Hypothecation– Allows investors to pledge their holdings as collateral.
Corporate Actions Management– Facilitates dividend payouts, bonus shares, and rights issues.
Foreign Portfolio Investor (FPI) Monitoring – Manages investment limits for foreign investors.
Subsidiaries of NSDL
1. NSDL Database Management Limited (NDML): Offers digital services for e-governance and financial markets.
2. NSDL Payments Bank:Provides digital banking and financial services.
Financial Performance of NSDL (2023-24)
NSDL reported strong financial growth, reflecting its dominant position in the market. The company’s financial stability, regulatory compliance, and investor trust make it a credible and authoritative financial institution.
Revenue and Profit Trends
| Year | Revenue from Operations ( Cr.) | Profit Before Tax (Cr.) | Profit After Tax (Cr.) |
|---|---|---|---|
| 2022-23 | 1,021.99 | 305.04 | 234.81 |
| 2023-24 | 1,268.24 | 354.95 | 275.44 |
- YoY revenue growth: 24.1%
- YoY profit after tax (PAT) growth: 17.3%
EBITDA and Earnings Per Share (EPS)
| Year | EBITDA ( Cr.) | EBITDA Margin (%) | EPS (per share) |
|---|---|---|---|
| 2022-23 | 282 | 57.5% | 11.74 |
| 2023-24 | 340 | 59.5% | 13.77 |
- EBITDA margin growth: +2% YoY
- EPS growth: +17.3% YoY
Balance Sheet and Cash Flow Analysis
NSDL's financial strength and credibility are further reinforced by its net worth and liquidity position.
Net Worth Growth
NSDL’s net worth increased by 18.6% YoY, reaching 1,509 Cr in FY 2023-24.
Cash Flow from Operating Activities
| FY 2023-24 | FY 2022-23 | Key Investments |
|---|---|---|
| 17,013.16 Cr (Net Cash Generated) | 33,328.29 Cr | 22,371.73 Cr in infrastructure and digital transformation |
NSDL’s Shareholders and Business Partnerships
Major Shareholders
| Shareholder | Stake (%) |
|---|---|
| IDBI Bank | 26% |
| National Stock Exchange (NSE) | 24% |
| State Bank of India (SBI) | 19% |
| HDFC Bank | 9% |
| Others | 22% |
Conclusion: Is NSDL a Market Leader?
NSDL’s leadership in India’s securities depository sector is well-established due to:
- 86.83% market share in securities custody【51:7†NSDL_Annual_Report_2023-24.pdf】
- Over 423.44 lakh crore in assets under custody (AUC)
- Largest repository for debt securities (97.45% market share)【51:7†NSDL_Annual_Report_2023-24.pdf】
Final Thoughts
With proven expertise, strong governance, and regulatory compliance, NSDL is a trusted and authoritative financial institution for investors, brokers, and institutions alike.