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Economic Times
01-08-2025
- Business
- Economic Times
NSDL IPO subscribed over 5.03 times on Day 3 so far, GMP rises to 17%. Check reviews, other details
The initial public offering (IPO) of National Securities Depository Limited (NSDL), India's first and largest depository, attracted strong investor interest, with robust subscription continuing on the third and final day of bidding. The issue was booked 5.03 times overall, indicating solid demand across all investor categories. The IPO is open for subscription from July 30 to August 1. NSDL shares are trading at a 16.75% premium in the grey market over the upper end of the IPO price band at Rs 800. ADVERTISEMENT NSDL IPO was subscribed 5.03 times across all categories. This surge in subscription demand for the IPO was largely driven by non-institutional investors (NIIs), who booked their allotted quota 11.08 times. Retail investors followed with a 4.17 times subscription, while qualified institutional buyers (QIBs) subscribed 1.96 times, on Day 3 at 10.05 am. In the grey market, NSDL shares are trading at a premium of 16.75% over the upper end of the IPO price band, which is set at Rs 760–Rs 800 per share. This premium indicates a potential listing gain of around Rs 134, indicating a likely debut price of approximately Rs 934 per public offering is a pure offer-for-sale (OFS), totalling Rs 4,012 crore, by existing shareholders. ADVERTISEMENT Brokerages have largely recommended a 'Subscribe' rating to the NSDL IPO for long-term investors. Anand Rathi and Canara Bank Securities cite NSDL's near-monopoly scale in the depository ecosystem, healthy financials, wide product coverage, and strategic relevance to India's capital market infrastructure as key Angel One has issued a 'subscribe for long-term' rating for the offer, stating, 'At the upper price band of Rs 800, NSDL is valued at a post-issue P/E of 47× FY25 earnings, which is lower than listed peer CDSL. Given its strong market position, high entry barriers, and long-term growth tailwinds from India's digital and capital market expansion.' ADVERTISEMENT Additionally, Bajaj Broking also assigned a 'subscribe for long-term' rating for the NSDL IPO. In its note, it stated that NSDL is engaged as a pioneer in depository services in India and is an icebreaker for the demat process. The company is expanding its horizon with more value-added services and options. 'With dominant market share, a wide service reach, and diversified asset coverage, NSDL is well-positioned for long-term growth, supported by macroeconomic tailwinds and regulatory enablers. However, investors should remain cautious of its dependence on transaction volumes, evolving investor behaviour, and high regulatory and cybersecurity risks,' flagged Saurabh Jain, Equity Head, Research- Fundamentals at SMC Global Securities. ADVERTISEMENT The NSDL IPO comprises 5.01 crore equity shares, and the subscription window will remain open until Friday, August 1. Investors can bid for a minimum lot of 18 equity shares and in multiples thereof. Shares of the company are proposed to be listed on the BSE, tentatively on August has set the IPO price band at Rs 760 to Rs 800 per share. ADVERTISEMENT Established following the enactment of the Depositories Act, 1996, NSDL was the first depository to commence operations in India. It plays a crucial role in the country's financial market infrastructure and offers depository services across multiple asset classes, including equities, debt instruments, mutual funds, REITs, InvITs, AIFs, and boasts a pan-India reach, covering over 99% of PIN codes, and has a global footprint with clients in 186 countries. The company operates on a stable annuity-like revenue model, derived from annual issuer charges and transaction-based the financial year ended FY25, NSDL reported revenue of Rs 1,420 crore, marking a 12% year-on-year growth, while profit after tax (PAT) rose 25% YoY to Rs 343 crore. The company posted a strong EBITDA margin of 34.71%, highlighting efficient has also diversified its business through subsidiaries like NSDL Database Management Ltd (NDML) and NSDL Payments Bank Ltd (NPBL), expanding into areas such as e-governance services, regulatory technology platforms, and digital banking. Also read: TACO trade or duck for cover? How Sensex, Nifty traders should play Trump tariff tantrum On the valuation front, the IPO is priced at a price-to-earnings (P/E) ratio of 46.62x and a price-to-book (P/B) ratio of 7.98x, based on FY25 earnings. In comparison, its listed peer Central Depository Services (India) Ltd (CDSL) trades at a higher P/E of 60.43x and P/B of 18.08x. However, NSDL commands a larger share of demat assets, more extensive institutional coverage, and a broader service infrastructure. (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times) (You can now subscribe to our ETMarkets WhatsApp channel)
Economic Times
31-07-2025
- Business
- Economic Times
NSDL IPO subscribed 1.99 times on Day 2, GMP rises to 17%. Check reviews, other details
The initial public offering (IPO) of National Securities Depository Limited (NSDL), India's first and largest depository, experienced strong investor interest on its second day, with the subscription reaching nearly twice the number of shares available. The IPO was open for subscription from July 30 to August 1. The IPO's grey market premium (GMP) currently stands at 14.44%, equivalent to Rs 135. ADVERTISEMENT By 10:10 am on Day 2, the overall subscription reached 1.99 times, fueled mainly by strong interest from non-institutional investors (NIIs). NIIs had subscribed 3.27 times, while retail investors showed a 2.08 times subscription. Qualified institutional buyers (QIBs) contributed with an 84% subscription rate. This public offering is a pure offer-for-sale (OFS) by existing shareholders, totalling Rs 4,012 crore. In the grey market, NSDL shares are trading at a healthy 14.44% premium, indicating a potential listing gain of around Rs 135 per share, based on the upper IPO price band of Rs 800. The IPO price band has been set between Rs 760 and Rs 800 per share Brokerages have largely recommended a 'Subscribe' rating to the NSDL IPO for long-term investors. Anand Rathi and Canara Bank Securities cite NSDL's near-monopoly scale in the depository ecosystem, healthy financials, wide product coverage, and strategic relevance to India's capital market infrastructure as key positives. ADVERTISEMENT Meanwhile, Angel One has issued a 'subscribe for long-term' rating for the offer, stating, 'At the upper price band of Rs 800, NSDL is valued at a post-issue P/E of 47× FY25 earnings, which is lower than listed peer CDSL. Given its strong market position, high entry barriers, and long-term growth tailwinds from India's digital and capital market expansion.'Additionally, Bajaj Broking also assigned a 'subscribe for long-term' rating for the NSDL IPO. In its note, it stated that NSDL is engaged as a pioneer in depository services in India and is an icebreaker for the demat process. The company is expanding its horizon with more value-added services and options. ADVERTISEMENT 'With dominant market share, a wide service reach, and diversified asset coverage, NSDL is well-positioned for long-term growth, supported by macroeconomic tailwinds and regulatory enablers. However, investors should remain cautious of its dependence on transaction volumes, evolving investor behaviour, and high regulatory and cybersecurity risks,' flagged Saurabh Jain, Equity Head, Research- Fundamentals at SMC Global Securities. ADVERTISEMENT The NSDL IPO comprises 5.01 crore equity shares, and the subscription window will remain open until August 1. Investors can bid for a minimum lot of 18 equity shares and in multiples thereof. The company is proposed to be listed on the BSE, with the tentative listing date set for August has set the IPO price band at Rs 760 to Rs 800 per share. ADVERTISEMENT Established following the enactment of the Depositories Act, 1996, NSDL was the first depository to commence operations in India. It plays a crucial role in the country's financial market infrastructure and offers depository services across multiple asset classes, including equities, debt instruments, mutual funds, REITs, InvITs, AIFs, and boasts a pan-India reach, covering over 99% of PIN codes, and has a global footprint with clients in 186 countries. The company operates on a stable annuity-like revenue model, derived from annual issuer charges and transaction-based the financial year ended FY25, NSDL reported revenue of Rs 1,420 crore, marking a 12% year-on-year growth, while profit after tax (PAT) rose 25% YoY to Rs 343 crore. The company posted a strong EBITDA margin of 34.71%, highlighting efficient has also diversified its business through subsidiaries like NSDL Database Management Ltd (NDML) and NSDL Payments Bank Ltd (NPBL), expanding into areas such as e-governance services, regulatory technology platforms, and digital banking. Also read: Brigade Hotel Ventures shares list at 10% discount to IPO price On the valuation front, the IPO is priced at a price-to-earnings (P/E) ratio of 46.62x and a price-to-book (P/B) ratio of 7.98x, based on FY25 earnings. In comparison, its listed peer Central Depository Services (India) Ltd (CDSL) trades at a higher P/E of 60.43x and P/B of 18.08x. However, NSDL commands a larger share of demat assets, more extensive institutional coverage, and a broader service infrastructure. (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times) (You can now subscribe to our ETMarkets WhatsApp channel)
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Business Standard
30-07-2025
- Business
- Business Standard
NSDL IPO opens: Analysts upbeat on fair valuation; should you subscribe?
NSDL IPO opens for subscritpion today: Brokerages remain upbeat about the much-awaited initial public offering (IPO) of India's largest depository, National Securities Depository Limited (NSDL), which opens for public subscription today. Market analysts have broadly shared positive views on the public issue, citing its fair valuation compared to its only listed rival, Central Depository Services (India) Limited (CDSL), and believe the company is well-positioned for long-term growth prospects. Notably, the NSDL IPO comprises an Offer for Sale (OFS) of 50.14 million equity shares, aggregating up to ₹4,011.60 crore, with no fresh capital being raised by the company. The shareholders participating in the OFS include IDBI Bank, National Stock Exchange (NSE), HDFC Bank, State Bank of India (SBI), Union Bank of India, and the Administrator of the Specified Undertaking of the Unit Trust of India (SUUTI). Notably, the depository has already raised ₹1,201 crore from anchor investors during the bidding concluded on July 29. The NSDL IPO is being offered at a price band of ₹760 to ₹800 per share with a lot size of 18 shares. Thus, investors can bid for a minimum of 18 shares and in multiples thereof. A retail investor would require a minimum of ₹14,400 to bid for one lot (18 shares) of NSDL, and ₹1,87,200 to bid for a maximum of 13 lots (234 shares). That said, since the public issue is an Offer for Sale, NSDL will not receive any proceeds from it. Instead, the funds will go to the existing shareholders, who are divesting part of their stakes. Here's what the brokerages have said about the NSDL IPO: Anand Rathi Research – Subscribe Analysts at Anand Rathi Research have recommended subscribing to the public issue of NSDL, citing its fair pricing. NSDL, analysts believe, will maintain its focus on unlocking growth opportunities and deepening market reach by utilizing its core competencies. "The company plans to strengthen and modernize its IT infrastructure to improve operational efficiency, elevate service standards, and bolster resilience. Additionally, it aims to broaden its range of services, enhance its database management capabilities, and expand the market share of its payments bank division," wrote the analysts in their report. "At the upper price band, the company is valuing at a P/E of 46.6x to its FY25 earnings, with a market cap of ₹16,000 crore and a return on net worth of 17.1 per cent post-issue of equity shares. We believe that the IPO is fairly priced and recommend a 'Subscribe' rating for the IPO." Canara Bank Securities – Subscribe Brokerage firm Canara Bank Securities has also assigned a 'Subscribe' rating to the NSDL IPO with a medium- to long-term investment horizon and said that the company is well-positioned for long-term growth. "NSDL forms a critical backbone of India's capital market infrastructure with wide network penetration and regulatory significance. Its annuity-like revenue model, diversified service suite, and leadership in depository operations offer scalability and resilience," said the brokerage in its report. The IPO's pricing, the brokerage said, appears attractive compared to CDSL's P/E of 60.43x and P/B of 18.08x, especially considering NSDL's superior assets under custody and service reach. With rising demat penetration and increasing financialization of the economy, NSDL is expected to benefit from long-term trends. Angel One – Subscribe for long-term Analysts at Angel One have recommended investors to subscribe for a long-term investment perspective. The analysts highlighted that at the upper price band of ₹800, NSDL is valued at a post-issue P/E of 47× FY25 earnings, which is lower than its listed peer, CDSL. "Given its strong market position, high entry barriers, and long-term growth tailwinds from India's digital and capital market expansion, we assign a 'Subscribe' rating for long-term investors," wrote the analysts in their report. Equinomics – Subscribe for listing gains Those at Equinomics have recommended that investors consider subscribing to the NSDL IPO for possible tactical listing gains. "CDSL looks superior to NSDL in terms of growth profile. However, the NSDL IPO may give some tactical gains on listing as it has a considerable discount to CDSL on IPO issue price at the upper band," wrote the analysts at Equinomics in their research report. About National Securities Depository National Securities Depository Ltd is a SEBI-registered market infrastructure institution ('MII') offering a wide range of products and services to the financial and securities markets in India. Following the introduction of the Depositories Act in 1996, through their company, they pioneered the dematerialization of securities in India in November 1996. As of March 31, 2025, they are the largest depository in India in terms of number of issuers, number of active instruments, market share in demat value of settlement volume, and value of assets held under custody
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Business Standard
29-07-2025
- Business
- Business Standard
Laxmi India Finance IPO opens today: GMP up 6%; should you subscribe?
Laxmi India Finance IPO opens for public subscription: The initial public offering (IPO) of non-banking financial company (NBFC) Laxmi India Finance is set to open for public subscription today, Tuesday, July 29, 2025. At the upper end, the company aims to raise ₹254.26 crore through the offering, which comprises a fresh issue of 10.5 million equity shares and an offer for sale (OFS) by promoters divesting up to 5.6 million equity shares. Notably, Laxmi India Finance has already raised ₹75.51 crore from anchor investors in the bidding that concluded on July 28. Here are the key details of the Laxmi India Finance IPO: Laxmi India Finance IPO price band, lot size Laxmi India Finance has set a price band of ₹150-158 per share for the public issue. The lot size is 94 shares, allowing investors to bid for a minimum of one lot (94 shares) at ₹14,852. A retail investor can, however, bid for a maximum of 13 lots or 1,222 shares of Laxmi India Finance IPO with an investment of ₹1,93,076. Laxmi India Finance IPO grey market premium (GMP) today The unlisted shares of Laxmi India Finance were commanding a decent premium in the grey market ahead of the opening of their public issue. Sources tracking unofficial market activity revealed that Laxmi India Finance shares were trading at ₹167 apiece, reflecting a grey market premium (GMP) of ₹9 or 5.70 per cent over the upper price band of ₹158. Laxmi India Finance IPO allotment date, listing date Laxmi India Finance IPO will remain open for subscription until Thursday, July 31, 2025. Following that, the basis of allotment of Laxmi India Finance IPO shares is expected to be finalised on Friday, August 1, 2025, and shares will be credited to successful allottees' demat accounts on Monday, August 4, 2025. The tentative listing date for Laxmi India Finance shares on the BSE and NSE is Tuesday, August 5, 2025. Laxmi India Finance IPO registrar, lead manager MUFG Intime India (Link Intime) has been appointed as the registrar for the Laxmi India Finance IPO, while PL Capital Markets is the sole book-running lead manager for the issue. Laxmi India Finance IPO objectives The company will not receive any proceeds from the OFS, as those will go to the selling promoters. 'Each Selling Shareholder will be entitled to its respective share of the proceeds of the Offer for Sale after deducting its respective proportion of the offer-related expenses and relevant taxes thereon,' Laxmi India Finance said in its Red Herring Prospectus (RHP). However, Laxmi India Finance plans to use the proceeds from the fresh issue for the augmentation of the capital base to meet the future capital requirements towards onward lending. Should you subscribe to the Laxmi India Finance IPO? Canara Bank Securities: Subscribe for long-term Analysts at Canara Bank Securities have recommended the investors to subscribe to the Laxmi India Finance IPO for long-term gains. The analysts highlighted that the company has had robust financial performance for the past three years, where revenue has grown at a CAGR of 38 per cent from ₹129 crore to ₹245 crore, whereas profit after tax (PAT) has grown at a CAGR of 50 per cent from ₹16 crore to ₹36 crore. "The issue is overpriced at 2.57X P/B, whereas the listed peers on average are available at 2.02X P/B. The company is well positioned to take advantage of the MSME surge in India. As of now, LIF is present only in 5 states with major presence (80 per cent) in Rajasthan," wrote the analysts in the report. This, the analysts believe, leaves plenty of room for LIF to enter new states and become more dominant in the existing states. "We recommend Subscribe for the long-term gains." About Laxmi India Finance Incorporated in 1996, Laxmi India Finance is a Non-banking financial company (NBFC) focused on lending to individuals and small businesses. As on March 31, 2025, its operational network spans across 158 branches in rural, semi-urban, and urban areas in the states of Rajasthan, Gujarat, Madhya Pradesh, Chhattisgarh, and Uttar Pradesh. LIFL has the widest reach in Rajasthan in terms of being the company with the highest number of branches amongst its peers for the period ending FY25 (Source: CARE Report).
Time of India
30-05-2025
- Business
- Time of India
Scoda Tubes IPO attracts strong demand, subscribed over 9x on Day 3 so far. Check details
The initial public offering ( IPO ) of Scoda Tubes , which saw a smooth response on the first 2 days of the bidding process, has drawn robust interest on Day 3, with the issue subscribed 0.07 times in total so far. The strong response has been led by non-institutional investors (NIIs), who had subscribed 27.04 times by around 11:15 am. Retail investors followed with a 5.63 times subscription , while qualified institutional buyers (QIBs) took up the issue 1.8 times. Key details of the Scoda Tubes IPO: Scoda Tubes grey market premium (GMP) In the unlisted market, Scoda Tubes shares are commanding a premium of Rs 19–21, translating to a GMP of 13.6%. Should you subscribe to the Scoda Tubes IPO? Brokerage firm Canara Bank Securities has recommended a 'SUBSCRIBE' rating for long-term investors. It noted that the company's technical expertise, rising export share, asset-backed expansion, and sector tailwinds position it well for scalable growth. While the IPO is priced at a P/E of 30.43x and a P/B of 8.76x -- broadly in line with industry peers -- investors should be mindful of cash flow concerns and customer concentration risks. Analysts at Anand Rathi stated they believe that the company's key differentiator is its manufacturing process of its crucial raw material which enables backward integration , enabling Scoda Tubes to exercise greater control over production costs, reduce dependence on third-party suppliers, and improve overall operational efficiency. As the issue is fully priced, they gave a 'Subscribe for long term' rating for the issue. In summary, investors with a long-term view looking to tap into India's industrial and export manufacturing story may consider subscribing to Scoda Tubes IPO. Important dates for Scoda Tubes IPO The IPO opened for subscription on May 28 and will remain open until May 30. Allotment is expected to be finalized by June 2, with the listing scheduled for June 4 on both NSE and BSE. Scoda Tubes IPO Structure The company plans to raise Rs 220 crore via a 100% fresh issue, offering 1.57 crore to 1.69 crore equity shares within a price band of Rs 130 to Rs 140 per share. About Scoda Tubes Established in 2008, Scoda Tubes manufactures stainless-steel seamless and welded tubes for critical industries including oil & gas, chemicals, power, railways, and pharmaceuticals. The company operates out of Mehsana, Gujarat, and boasts backward integration through a hot piercing mill. Scoda Tubes has also expanded internationally, with exports contributing over 28% to total revenue in the first nine months of FY25, spanning 11 countries. Financial Snapshot Scoda Tubes has posted impressive growth over the past two years. Revenue rose sharply from Rs 194 crore in FY22 to Rs 400 crore in FY24, while profit after tax (PAT) jumped from Rs 1.63 crore to Rs 18.3 crore over the same period. Operationally, the company has strengthened its margins, with EBITDA margin climbing from 5.15% in FY22 to 14.7% in FY24, and return on equity (RoE) improving to 28.77%. However, despite this performance, the company's cash flow from operations in FY24 was modest at Rs 2.26 crore, highlighting concerns around cash flow efficiency even amid rising revenue and profits. ( Disclaimer : Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
