NSDL Rally Extends to Day 4, Shares Soar 78% Over IPO Price

Shares of National Securities Depository (NSDL) continued their post listing climb to the fourth session in a row on August 11, adding another 10% to its surge. The relentless buying in the counter has taken the stock over 78% above its issue price of ₹800 and about 62% higher than its debut level of ₹880.

In today's session, the stock soared 10% and hit a record high of ₹1,425 on the NSE.

With the stellar run, the company’s market value also crossed the ₹28,000 crore mark in just four sessions. For investors who were allotted shares in the IPO, the gains are massive. On top of that, the company also moved past its rival CDSL on the valuation front too. At the IPO price, NSDL was valued at a P/E multiple of 46.63 and a price to book ratio of 7.98. However, post the rally, its P/E has swelled up to around 77, higher than peer CDSL’s at 66.

The listing earlier this week was decent but not spectacular. Shares opened at ₹880, a 10% premium to the issue price, but still underwhelmed investors by lagging the 16% premium signalled by grey market trends. Post listing though, the stock garnered strong buying traction and surged to ₹920 during the day. The pace picked up from there. The following day, on August 7, the stock hit its upper circuit at ₹1,123, and today’s surge just propelled more momentum.

Strong institutional demand supported the company’s ₹4,012 crore IPO, which was entirely an offer for sale. It was subscribed 41.02 times overall, led by Qualified Institutional Buyers at 103.97 times, followed by non institutional investors at 34.98 times and retail investors at 7.76 times. Anchor investors had already committed ₹1,201.44 crore before the offer opened.

Financially, NSDL reported a 12% rise in revenue to ₹1,535.19 crore for FY25, while profit after tax grew 25% to ₹343.12 crore. Analysts hold a bullish lens for NSDL, backed by its strong fundamentals. The company operates as a Sebi registered market infrastructure institution and, along with CDSL, forms a near duopoly in the depository space.

“NSDL continues to lead in value based transactions and institutional account holdings, underpinned by deep rooted industry trust and robust technological infrastructure,” said Prashanth Tapse, Senior Vice President Research at Mehta Equities.

Still, analysts remain divided on how investors should sail through NSDL’s post-listing saga. Shivani Nyati, Head of Wealth at Swastika Investmart, suggested booking partial profits post listing while holding on to some shares, with a stop loss near ₹850. Tapse advised long term investors to hold, and those without allotment to wait and watch for a post listing dip.

For now, NSDL’s first few days on the Street have been upbeat and rewarding for its IPO investors. However, whether the stock can sustain its run will depend on how the market balances near term enthusiasm with the company’s long term growth story in India’s capital market infrastructure.