NSDL IPO: What retail investors should know as big players book 700% gains

As NSDL gears up for its ₹4,011.6 crore IPO, retail investors eager to get in early were buying from institutional hands — including HDFC Bank, which quietly trimmed its stake and is now positioned to earn a staggering 702% return.

HDFC Bank reduced its NSDL holding by 1.99 million shares over the past year, cutting its stake to 7.95% by July 23, just ahead of the IPO filing. With an average acquisition cost of ₹108.29 per share and the IPO priced between ₹760–800, the bank is set to net ₹161 crore at the top end of the band.

The IPO is a pure offer for sale, with other key selling shareholders including IDBI Bank (26.1%), NSE (24%), and SUUTI (6.83%). Though Kotak Mahindra Life pared its 2.97% stake over the past year, it is not among the official sellers in the IPO.

According to analysts, the supply in the unlisted market over the past year came predominantly from institutional sellers, meeting the swelling retail appetite for capital market infrastructure plays like NSDL.

Retail interest picked up significantly after April, when share transfers were streamlined to a one-day process. This pushed the number of retail investors in NSDL to an estimated 9,000–10,000.

In the unlisted market, NSDL shares have traded between ₹800 and ₹1,200 over the past year, currently hovering near ₹1,000. Though the IPO offer price is slightly lower, a ₹165 grey market premium suggests the stock could list near recent unlisted highs.

Analysts say retail investors who entered early won’t necessarily lose out — provided they stay invested. NSDL holds ₹464 trillion in demat assets, more than six times the ₹70.5 trillion held by rival CDSL, underscoring its dominant position.