Shares of National Securities Depository Ltd (NSDL) surged as much as 6.6% on Thursday to Rs 997.65 on the BSE, extending their post-listing rally to 13.4% from the opening price of Rs 880, prompting investors to weigh whether they should lock in early gains or hold on for longer-term upside.NSDL shares listed on the BSE at Rs 880 on Wednesday, delivering a 10% premium over the IPO price of Rs 800 per share. The stock rose to an intraday high of Rs 920 on debut day, reaching a 4.5% high over its opening level.While the two-day rally marks a promising start, it still lags behind the grey market premium of Rs 125 per share ahead of the listing, which had implied a 16% gain.Strong institutional demand underpins listingThe Rs 4,012 crore initial public offering was entirely an offer for sale (OFS) of 5.01 crore shares, with no fresh capital raised. The issue aimed to provide liquidity to existing shareholders and enable listing benefits, leaving the promoter holding unchanged at 20 crore shares post-listing.Investor appetite for the issue was robust, with the IPO subscribed 41.02 times overall. Qualified Institutional Buyers (QIBs) led the demand with a subscription of 103.97 times, followed by Non-Institutional Investors (34.98 times) and retail investors (7.76 times). The anchor book raised Rs 1,201.44 crore on July 29, reflecting strong institutional confidence.“National Securities Depository Limited (NSDL) made quite a good, solid debut on the stock market,” said Shivani Nyati, Head of Wealth at Swastika Investmart.Market infrastructure backboneFounded in 2012, NSDL is a SEBI-registered Market Infrastructure Institution (MII) that plays a central role in India’s dematerialized securities ecosystem. Its services include demat account operations, trade settlements, e-voting, pledge services, corporate actions, and consolidated account statements. As of March 2025, the company managed 3.94 crore active demat accounts through 294 depository participants.NSDL’s subsidiaries, NSDL Database Management and NSDL Payments Bank, extend its reach into e-governance and digital financial services.Financial performance and valuationsIn FY25, NSDL reported a 12% year-on-year increase in revenue to Rs 1,535.19 crore, while profit after tax rose 25% to Rs 343.12 crore. The IPO was priced at a price-to-earnings (P/E) ratio of 46.63 and a price-to-book value of 7.98, which some analysts consider to be at the higher end.Still, Nyati highlighted the company’s strengths and said, "the company is expanding its horizon with more value-added services and options. The company posted steady growth in its top and bottom lines.” Nyati said, “National Securities Depository Limited (NSDL) is SEBI-registered Market Infrastructure Institution and acts as a securities depository in India.”What should investors do?Analysts remain cautiously optimistic about the stock’s prospects. “Investors are advised to book partial profits near the listing level and retain some shares, possibly with a stop‑loss around Rs 850,” Nyati said.While the initial pop fell short of bullish forecasts, NSDL’s strategic role in capital markets, solid financials, and expanding services may support longer-term gains. For now, the debate turns to whether investors should pocket quick profits or hold on for more.Also read | NSDL shares list at 10% premium, close higher(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
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