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Since debuting on August 6, NSDL has gained in each of its four trading sessions, reflecting strong investor appetite.
After an impressive rally following the stock’s listing, what should investors do?
“We remain constructive on NSDL, given its leadership in the institutional depository segment and its significant role in offering custodial and depository services to mutual funds, insurers, banks, and foreign portfolio investors (FPIs). With a robust market position, steady revenue visibility, and reasonable valuations, we recommend a HOLD for investors who received allotments, keeping a long-term view in mind,” said Gaurav Garg from Lemonn Markets Desk.
“For those who did not receive an allotment, it would be prudent to await a market dip before considering fresh entry, especially amid prevailing market volatility,” said Garg.
The Rs 4,012 crore IPO, entirely an offer for sale, was subscribed 41.02 times, with Qualified Institutional Buyers leading at 103.97 times, followed by Non-Institutional Investors at 34.98 times and retail investors at 7.76 times.Ahead of the IPO, the company raised Rs 1,201.44 crore via anchor allotments, signalling robust institutional demand.NSDL, a SEBI-registered Market Infrastructure Institution, manages dematerialised securities and offers services such as demat operations, trade settlements, e-voting, pledge management, and corporate actions.
As of March 2025, it handled 3.94 crore active demat accounts via 294 depository participants. Subsidiaries like NSDL Database Management and NSDL Payments Bank extend their reach into e-governance and digital finance.
For FY25, NSDL posted a 12% rise in revenue to Rs 1,535.19 crore and a 25% jump in profit after tax to Rs 343.12 crore. The IPO was priced at a P/E of 46.63 and a price-to-book value of 7.98, valuations that some analysts consider elevated. Shivani Nyati, Head of Wealth at Swastika Investmart, noted that NSDL made “a good, solid debut” and is expanding its offerings with more value-added services, supporting steady growth in both revenue and profit.
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(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
