NSDL reports nearly 5% rise in Q4 profit to Rs 83.3 crore ahead of IPO

National Securities Depository Ltd (NSDL), which is preparing for its initial public offering (IPO), reported a 4.77 per cent increase in consolidated net profit to Rs 83.3 crore for the quarter ended March 2025. The depository had posted a net profit of Rs 79.5 crore in the same period a year ago.

Total income during the January–March quarter rose 9.94 per cent year-on-year to Rs 394 crore, compared to Rs 358 crore in the corresponding period of FY24, the company said in a statement.

For the full financial year 2024–25, NSDL recorded a 24.57 per cent jump in net profit to Rs 343 crore. Its total income for the fiscal rose 12.41 per cent to Rs 1,535 crore.

The board of directors has recommended a final dividend of Rs 2 per equity share for FY25, subject to shareholder approval.

NSDL, which enables the holding and transfer of securities in dematerialised form, reported a strong nationwide presence. As of FY24, its demat account holders were spread across more than 99 per cent of India’s pin codes and 186 countries globally, with over 63,000 service centres operating in every state and Union Territory.

Ahead of its planned IPO, NSDL has revised the issue size. As per an addendum to its draft red herring prospectus (DRHP) filed earlier this month, the offering has been reduced to 5.01 crore shares from the previously proposed 5.72 crore shares, PTI reported.

The IPO will be purely an offer-for-sale (OFS), with no fresh issuance of shares. Prominent shareholders divesting part of their holdings include the National Stock Exchange of India (NSE), State Bank of India (SBI), and HDFC Bank. As the issue is entirely an OFS, NSDL will not receive any proceeds from the public offering.

The Securities and Exchange Board of India (Sebi) has granted NSDL an extension until July 31, 2025, to complete its listing. Upon listing, NSDL will become the country’s second publicly traded depository after Central Depository Services (India) Ltd (CDSL), which debuted on the NSE in 2017.

The listing is also necessary to meet Sebi’s ownership guidelines, which stipulate that no single entity may hold more than 15 per cent in a depository. Currently, IDBI Bank and NSE hold 26.10 per cent and 24 per cent, respectively, both exceeding the regulatory threshold and thus required to pare down their stakes.