Stock offering of NSDL set for July 30 with a 22% reduction in price compared to its current unlisted valuation
In the recent Indian IPO market, companies such as HDB Financial Services, Tata Technologies, AGS Transact, UTI Asset Management Company, PB Fintech, and National Securities Depository Ltd (NSDL) have followed a trend of steep cuts in price bands, including NSDL. This strategy is aimed at attracting a wider base of investors and ensuring successful subscription amid sometimes subdued market conditions.
NSDL's Initial Public Offering (IPO) price band has been set at Rs 760-800 per share, which represents a 22% discount from its peak unlisted market price of Rs 1,275 recorded in June 2025. This pricing strategy makes the IPO more attractive to retail and institutional investors, encouraging strong subscription and listing gains potential.
However, market experts warn that the unlisted price may not offer a meaningful discount to the expected IPO price. Early investors in NSDL stand to gain significantly, while later investors may face losses due to the correction in the unlisted market. Shares of NSDL, currently trading at Rs 1,025 in the unlisted market, have seen a 20% correction from their recent peak.
Analysts advise against investing in the unlisted space solely based on IPO anticipation, unless for long-term, high-risk investments. True value creation in the unlisted space requires investment two to three years ahead of the IPO at discounted valuations.
The NSDL IPO is set to open for subscription on July 30, 2025, and close on August 1, with anchor investor participation beginning on July 29. If the shares get the cut-off price at the upper end of the IPO price band, the company's market capitalisation will be around Rs 16,000 crore. The IPO aims to raise around Rs 4,011 crore.
Notably, IDBI Bank, which holds a 26% stake in NSDL, acquired its holding at an average cost of Rs 2 per share, translating into a return of over 39,000%. The bank's stake in NSDL is now valued at Rs 4,176 crore.
Upcoming IPOs from Tata Capital, Hero Fincap, and the National Stock Exchange (NSE) are expected to follow similar conservative pricing strategies. Pricing lower reduces the risk that the IPO may remain undersubscribed, reflecting market caution or valuations corrections, especially when companies open public offerings during volatile or uncertain market environments.
In summary, Indian companies reduce IPO price bands well below unlisted market valuations to balance between realistic market demand, optimize investor interest, and ensure smooth listing performance, especially when the IPO proceeds benefit existing shareholders rather than funding new company growth directly. This trend is visible in several recent IPOs across sectors, including NSDL, as reported in July 2025.
[1] Source: Business Standard, July 2025 [4] Source: Economic Times, July 2025
[1] To attract a larger pool of investors and ensure successful subscription, businesses such as NSDL are employing conservative pricing strategies in their IPOs, as reported by Business Standard in July 2025.
[4] These pricing strategies, including setting price bands below unlisted market valuations, aim to balance market demand, optimize investor interest, and maintain smooth listing performance, as noted by Economic Times in July 2025.
