NSDL Makes Strong Market Debut with 17% Listing Gains
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Shares of National Securities Depository Ltd. (NSDL) made a robust debut on the stock markets on Wednesday, August 6, listing at INR 880, a 10 per cent premium over its issue price of INR 800. The stock extended its gains during the session, closing at INR 937, up 17 per cent, reflecting strong investor confidence in the depository's long-term potential.
NSDL has now become the second depository services provider to be listed on Indian exchanges, following Central Depository Services Ltd. (CDSL), which has been publicly traded since 2017. NSDL is the older of the two and handles a larger share of India's demat accounts by value, managing over INR 400 lakh crore worth of securities as of 2024.
The company's INR 4,011 crore IPO saw overwhelming investor interest, with the issue being subscribed 41 times, garnering bids worth over INR 1.1 lakh crore.
The qualified institutional buyers (QIBs) led the rally, subscribing 104 times their allotted quota, while non-institutional investors (NIIs) subscribed 35 times, and retail investors subscribed 8 times the available portion.
NSDL priced its issue at INR 800 per share, and its strong grey market premium leading up to the listing hinted at a potential 17 per cent upside, which materialized on the debut day. The company generates revenue by charging annual communication and connectivity fees to its depository participants, based on bandwidth and operational usage.
NSDL operates India's first and largest securities depository. It facilitates the electronic settlement of trades by enabling the seamless transfer of securities between investors and clearing corporations.
NSDL's network of over 270 depository participants (DPs) also handles off-market transfers, corporate actions, and pledge/hypothecation services. All stock exchange-cleared trades are settled through its secure and centralized platform, ensuring transparency and efficiency in the capital markets.
Indian equities ended mixed on Wednesday. The Nifty 50 opened at 24,641, briefly touched 24,671, and slipped to a low of 24,544 during intraday trading. While banking and financial services stocks remained stable, sectors like IT, pharmaceuticals, media, and consumer goods underperformed.
The RBI's decision to maintain the status quo on policy rates, coupled with global concerns around tariff threats from the U.S., kept overall sentiment defensive. NSDL shares closed at INR 936 on the BSE, solidifying a strong start for the depository firm, according to Ashika Institutional Equities.
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