NSDL IPO: SBI, NSE, IDBI to reap massive returns as issue opens July 30

The NSDL IPO, opening July 30, will deliver massive gains to early investors like SBI, NSE, and IDBI, with returns of up to 39,900%. However, retail investors who bought shares at unlisted market prices may face disappointment as the price band is lower

New Delhi: The State Bank of India (SBI), National Stock Exchange (NSE), Union Bank of India, and other stakeholders will earn whopping returns from their investments in the National Securities Depository Limited (NSDL) through its upcoming IPO.

In the NSDL’s IPO, SBI may offload 4 million shares of the depository at Rs 800 per share which were acquired at a nominal price of Rs 2 per share. SBI can receive Rs 800 apiece if the share’s cut-off price falls at the upper price band. SBI is poised to receive Rs 320 crore in proceeds against an original investment of just Rs 80 lakh, delivering a staggering return of 39,900 per cent.

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The NSE had acquired a 24 per cent stake in NSDL at an average cost of just Rs 12.28 per share, and will sell 1.8 crore shares to earn a profit of Rs 1,418 crore or a staggering 6,415 per cent return. A latecomer to the party, Union Bank of India, which has 5 lakh shares acquired at Rs 5.20, will pocket Rs 40 crore against an investment of Rs 26 lakh, still delivering returns of over 15,000 per cent.

NSDL announced its initial public offering (IPO) price band at a steep discount of 22 per cent from its prevailing unlisted market valuation. The price band looks disheartening to the investors who hold the stock now at its unlisted market price of Rs 1,025 per share.

Institutional investors who were early to the party stand to gain significantly, whereas retail investors who joined the bandwagon later will face losses.

IDBI Bank, which holds a 26 per cent stake in NSDL, had acquired its holding at an average cost of Rs 2 per share, translating into a staggering return of over 39,000 per cent; its stake is now valued at Rs 4,176 crore, up from an initial investment of Rs 10.44 crore.

NSDL’s IPO will open for subscription on July 30, 2025 and close on August 1, with anchor investor participation beginning on July 29. The issue, which is a pure offer for sale, aims to raise around Rs 4,011 crore.