July 30, 2025
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NSDL IPO – A Rare Opportunity in a Duopoly Business
The much-awaited NSDL IPO is finally here! Being part of a duopoly business (with CDSL as its only competitor), NSDL stands to benefit immensely as India witnesses a surge in Demat account openings and growing investor participation in IPOs and the secondary market. Every new entrant must choose either NSDL or CDSL, and NSDL, being the elder and more established player, enjoys distinct advantages that translate into better performance metrics and valuations.
Let’s review some key indicators in simple terms:
1️⃣ Market Leadership: NSDL commands 86.80% market share in total demat custody value.
2️⃣ Dominance in Debt Securities: Holds 97.0% market share in listed debt securities – a segment with strong growth potential.
3️⃣ Strong Presence in Unlisted Companies: Enjoys 73.0% share here.
4️⃣ Active Instruments Share: Stands at 65.20% market share.
5️⃣ Robust Customer Base: 3.94 crore demat accounts and a 42.6% share in total income.
6️⃣ Superior Revenue Model: Higher operational revenue per account compared to CDSL. While CDSL may lead in new account additions, NSDL is far ahead in revenue share.
7️⃣ Debt-Free & Cash-Rich: No funding pressure for future expansion.
8️⃣ Duopoly Advantage: No new third player expected.
9️⃣ Generous Dividend Policy: Known for a high dividend payout ratio.
