NSDL Shares Jump Post-Listing; Experts Advise Long-Term Hold

NSDL Debuts at 10% Premium, Market Cap Hits ₹18,000 Crore

📈 National Securities Depository Ltd (NSDL) made a strong debut on the Bombay Stock Exchange (BSE) on Tuesday, listing at a 10% premium over its issue price and giving the company a market capitalization of nearly ₹18,000 crore.

The stock, which opened at ₹880 compared to the issue price of ₹800, traded 2.2% higher at ₹899.95 in early trade.

IPO Oversubscribed 41 Times

NSDL’s ₹4,011-crore Initial Public Offering (IPO) drew massive investor interest, being subscribed 41 times on the final day of bidding.

♦ Qualified Institutional Buyers (QIBs): 103.97x

♦ Non-Institutional Investors (NIIs): 34.98x

♦ Retail Investors (RIIs): 7.73x

The overwhelming response reflects strong confidence in the depository’s market position.

Grey Market Premium Signals Strong Listing

Ahead of its debut, the Grey Market Premium (GMP) stood at ₹135 per share, hinting at a ~17% gain over the upper price band of ₹800. However, the actual listing came slightly below GMP expectations.

Public Issue: Entirely Offer for Sale

The IPO consisted solely of an Offer for Sale (OFS) of 5.01 crore shares. Major stakeholders including the National Stock Exchange of India (NSE), State Bank of India (SBI), HDFC Bank, IDBI Bank, Union Bank of India, and the Administrator of Specified Undertaking of the Unit Trust of India (SUUTI) participated in the sale.

Since the issue was entirely OFS, NSDL will not receive any direct proceeds from the listing.

India’s Second Listed Depository

With this listing, NSDL becomes the country’s second publicly traded depository, after Central Depository Services Ltd (CDSL), which was listed in 2017.

Founded in 1996 following the Depositories Act, NSDL pioneered the dematerialisation of securities in India and remains a key SEBI-registered market infrastructure institution. Its services are widely used by mutual funds, insurance firms, banks, and foreign portfolio investors.

What Experts Say: Post-Listing Strategy

♦ Prashanth Tapse (Mehta Equities):

“Despite recent market volatility, NSDL IPO saw robust demand. Investors allotted shares should hold for the long term, while others may enter on dips.”

♦ Bhavik Joshi (INVasset PMS):

“The market is valuing NSDL beyond the IPO price due to optimism about long-term growth. Holding the stock is advisable given its strong fundamentals.”