NSDL Shares List at 10% Premium: Should You Buy, Sell or Hold?

National Securities Depository Ltd (NSDL) made its stock market debut on Wednesday with a 10% premium, listing at Rs.880 per share on the BSE, compared to its IPO price band of Rs.760–Rs.800. This marked NSDL as India’s second depository firm to go public, following CDSL's listing back in 2017.

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IPO Subscribed 41 Times

NSDL’s Rs.4,011 crore initial public offering (IPO), open between July 30 and August 1, saw overwhelming interest, getting subscribed 41 times. The company’s post-listing market capitalization now stands at an impressive Rs.17,600 crore, showcasing the confidence of institutional and retail investors alike.

Listing Below Grey Market Expectations

While NSDL’s debut was solid, it fell short of grey market expectations, which anticipated a 16% premium. The actual 10% gain suggests investor caution despite the positive sentiment during the IPO phase.

Buy, Sell, or Hold?

Analysts are largely advising investors to hold their positions for the long term. Prashanth Tapse of Mehta Equities highlighted NSDL’s dominance in value-based transactions and its near-duopoly with CDSL, making it a strong long-term bet.

Caution on Risks and Strategy

Saurabh Jain from SMC Global Securities acknowledged NSDL’s dominant market share, tech capabilities, and diverse services. However, he also cautioned against potential risks like regulatory changes, cybersecurity concerns, and fluctuating transaction volumes.

India’s First Depository Pioneer

NSDL has been a key player in India's financial markets since 1996, pioneering the dematerialisation of securities. As a SEBI-registered infrastructure institution, it continues to provide vital services in securities and financial market operations.

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