Shares of National Securities Depository Ltd (NSDL) are poised to make a strong debut on the stock exchanges on August 6, with market analysts projecting a listing premium of around 17 percent over the issue price. This estimate is based on the current grey market premium (GMP) of approximately Rs 135 over the upper price band of Rs 800 per share.
The IPO of NSDL, which ran from July 30 to August 1, received an overwhelming response, getting subscribed 41 times across investor categories. The price band for the IPO was set at Rs 760–800 per share.
Market Expectations and GMP Trend
According to Bhavik Joshi, Business Head at INVasset PMS, the IPO’s robust grey market performance reflects investor optimism about NSDL’s long-term prospects. “The market is valuing NSDL favourably beyond the IPO price, driven by optimism about its long-term growth,” he said.
The GMP, while fluctuating slightly in recent days, has held steady around the Rs 135 mark, suggesting healthy listing-day gains. Analysts believe the stock could see a 12-15 percent or higher listing gain depending on broader market sentiment.
Strong Institutional Participation
Prashanth Tapse, Senior Vice President (Research Analyst) at Mehta Equities Ltd, said the IPO’s strong demand was led by Qualified Institutional Buyers (QIBs) and Non-Institutional Investors (NIIs). “Despite volatility in broader markets in recent weeks, NSDL IPO witnessed strong investor interest… Retail participation was also decent compared to other recent IPOs,” he noted.
Tapse attributed the high demand to NSDL’s dominant role in India’s depository and custodial services, particularly for mutual funds, insurance companies, banks, and foreign portfolio investors (FPIs). He said NSDL operates alongside CDSL in a near-duopoly with high entry barriers, backed by strong technology infrastructure and industry trust.
Financials and Fundamentals
NSDL’s performance in FY25 has also bolstered investor sentiment. The company reported a 22.3 percent increase in net profit to Rs 343 crore, with an EBITDA margin of 32.1 percent. NSDL currently manages assets worth over Rs 510 lakh crore and services nearly 3.94 crore demat accounts.
“The strong response across categories reflects investor confidence in NSDL’s pivotal role in India’s capital market infrastructure,” Joshi said.
Offer Structure and Listing Impact
The IPO was entirely an Offer for Sale (OFS), meaning no fresh capital will flow into NSDL from the proceeds. The listing on August 6 will make NSDL only the second depository in India to be publicly traded, after Central Depository Services Ltd (CDSL), which was listed in 2017.
NSDL is a Sebi-registered market infrastructure institution, offering a range of services to financial market participants. It pioneered the dematerialisation of securities in India in 1996 following the Depositories Act.
Long-Term Outlook
Both Tapse and Joshi advise investors to consider holding NSDL for the long term. “For investors allotted shares, it is advisable to hold from a long-term perspective. Non-allotted investors can wait for any post-listing dip to enter,” Tapse said.
With its dominant market position, robust financials, and strategic importance in India’s capital market framework, NSDL’s listing is being seen as a significant event in the financial services sector.
Disclaimer: This is not investment advice. Capital Mirror is not responsible for any investment decisions based on this article. Please consult a financial advisor before investing.
