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Economic Times
15 hours ago
- Business
- Economic Times
NSE, NSDL shares slide up to 21% from peaks. What's behind the selling pressure in unlisted market?
HDB's discounted IPO upends sentiment Live Events NSDL shares drop NSE: Jane Street curbs add to the drag Tata Capital rights issue fuels valuation reset Broader unlisted market reset underway The road ahead (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel A sharp correction has gripped India's unlisted equity market over the past few weeks, with shares of marquee IPO-bound firms like the National Stock Exchange ( NSE ), National Securities Depository Ltd ( NSDL ), and Tata Capital and others sliding as much as 21% from their recent selling pressure has intensified in the wake of HDB Financial Services' steeply discounted IPO and a regulatory clampdown on global trading firm Jane Street, which has cast a fresh shadow over the outlook for India's derivatives market and dampened sentiment across the unlisted market Rs 12,500-crore IPO of HDB Financial Services, priced at Rs 740 per share, nearly 40% below its grey market value of Rs 1,225 as of June 18, has been a watershed moment for India's unlisted equity ecosystem. The stock, which listed at Rs 835 and hovered at Rs 845 on Friday, delivered no meaningful upside for those who entered the market early at inflated prices.'HDB Financial's IPO was priced at Rs 740, sharply below its grey market valuation of Rs 1,250–Rs 1,300. The 40%+ discount has surprised many investors,' said Gaurav Garg from Lemonn Markets. 'However, the valuation, implying a price-to-book of ~3.7x, is largely in line with listed NBFC peers like Shriram Finance (P/B ~2.4x) and well below Bajaj Finance (P/B ~6.3x).''As one investment banker noted, 'We have no influence on what is happening on the unlisted side.' In that light, the IPO price is not a case of underpricing, but rather a reflection of realistic, market-aligned valuation,' Garg Agrawal, Head of Fundamental Equity Research at SBI Securities, said 'the HDB IPO at Rs 740 vs Rs 1,250 grey market signals a necessary valuation reset in the unlisted space. Rising NPAs from MSME stress and slowdown in auto over recent quarters likely influenced pricing discipline, bringing expectations closer to listed market realities.'The deep discount in HDB Financial's IPO pricing signals more than just a one-off mispricing, said Anirudh Garg, Partner and Fund Manager at INVasset PMS, adding that "it reflects a broader recalibration in unlisted valuations driven by a divergence between private market optimism and listed market discipline."NSDL shares, which were trading at around Rs 1,275 in June, have declined to around Rs 1,025, a near 20-21% fall, after Securities and Exchange Board of India (Sebi) extended its IPO listing deadline from April 2024 to July 2025. The move dampened investor sentiment further, following the HDB debacle.'The 21% correction in NSDL was partly driven by the Sebi nominee rule extension, with additional pressure from HDB's weak listing and sentiment spillover from the NSE–Jane Street developments,' said from Lemonn Markets noted, 'NSDL's fundamentals remain intact, with a trailing P/E of ~60x, still reasonable compared to listed peer CDSL (~70x). The correction, therefore, appears more rooted in market psychology and the recalibration of IPO expectations than in company-specific risk.'Anirudh Garg pointed to the grey market's sensitivity to exit timelines. 'Investors in the unlisted space often anchor to a near-term liquidity event; once that timeline extends, enthusiasm deflates… The correction is equally a reflection of investors repricing duration risk and resetting expectations for exits,' he unlisted shares of NSE, India's dominant exchange in equity derivatives, have declined nearly 10% from their recent high of Rs 2,400, with traders growing cautious after the Sebi barred U.S.-based Jane Street from local markets. Sebi accused the global trading firm of misleading retail participants through index manipulation, a charge Jane Street has episode has stoked fears that Sebi could tighten trading rules, leading to lower volumes in derivatives, the segment that generates nearly two-thirds of NSE's Rs 171 billion in revenue. The sell-off in NSE's unlisted stock mirrors a 12% decline in the listed shares of BSE Ltd, and a drop in other Indian capital market firms.'The correction in NSDL was partly driven by… sentiment spillover from the NSE–Jane Street developments,' said Sunny Agrawal of SBI Jane Street curbs came just as NSE was gaining momentum for a long-awaited IPO. Its shares had rallied in the unlisted market to Rs 2,400 after it moved to settle a regulatory case that had derailed its listing plan since 2016. At that level, NSE's valuation of about $69 billion had surpassed global peers like Deutsche Boerse AG and Nasdaq Inc, according to a Bloomberg Capital's announcement of a rights issue at Rs 343, far below its unlisted market price of Rs 1,075, has added to concerns. The steep 64% discount came as a jolt to investors who had assumed the stock would list near prevailing private market said that 'Tata Capital's rights issue at Rs 343 vs Rs 1,075 reflects moderation in exuberance. The rights pricing indicates a move towards fairer value zones after an overvalued phase.'Gaurav Garg pointed out that the unlisted market implied a P/E of over 100x and a P/B of ~18x for Tata Capital, compared to Bajaj Finance's P/E of ~34x and P/B of ~5.9x. 'The discounted rights issue was a deliberate effort to cool overheated valuations ahead of IPO plans,' he said.'A PE multiple of 100x on unlisted trades was already signalling froth… The rights issue at just Rs 343 suggests that even the parent isn't willing to validate such lofty valuations,' Anirudh Garg IPO-bound firms have also taken a hit. Vikram Solar's shares are down 21% to Rs 375, while Hero Fincorp fell 9% to Rs 1,595. Gaurav Garg observed that Hero Fincorp and Vikram Solar were trading at trailing P/Es of ~185x and ~149x, respectively—multiples that are 'exceptionally high for the current environment.''These are not isolated events. Analysts believe we are in the early stages of a broader valuation reset,' he said. 'The grey market has already responded with notable corrections… Sentiment is shifting from FOMO-driven buying to cautious revaluation.'Anirudh Garg echoed the sentiment and said 'valuation compression is not just probable—it's necessary. These levels reflect exuberance from a time when liquidity was abundant and exits seemed imminent.''The recent correction appears more structural than cyclical. It marks a shift from speculative pricing toward fundamentals-led valuation,' said Garg.'Euphoria in unlisted markets in terms of valuations seems to be waning… Investors should be watchful of valuations and growth potential before buying stocks in unlisted markets,' said Sunny Agrawal, summing up the broader some companies may continue to command a premium, analysts say the unlisted space is transitioning from scarcity-led pricing to one where public market benchmarks increasingly anchor expectations.'Eventually, pricing will stabilize at more rational levels, separating structurally strong businesses from hype-driven plays,' said Anirudh Garg. Until then, the correction in NSE, NSDL and others is likely to keep investors cautious.: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
Time of India
15 hours ago
- Business
- Time of India
NSE, NSDL shares slide up to 21% from peaks. What's behind the selling pressure in unlisted market?
HDB's discounted IPO upends sentiment Live Events NSDL shares drop NSE: Jane Street curbs add to the drag Tata Capital rights issue fuels valuation reset Broader unlisted market reset underway The road ahead (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel A sharp correction has gripped India's unlisted equity market over the past few weeks, with shares of marquee IPO-bound firms like the National Stock Exchange ( NSE ), National Securities Depository Ltd ( NSDL ), and Tata Capital and others sliding as much as 21% from their recent selling pressure has intensified in the wake of HDB Financial Services' steeply discounted IPO and a regulatory clampdown on global trading firm Jane Street, which has cast a fresh shadow over the outlook for India's derivatives market and dampened sentiment across the unlisted market Rs 12,500-crore IPO of HDB Financial Services, priced at Rs 740 per share, nearly 40% below its grey market value of Rs 1,225 as of June 18, has been a watershed moment for India's unlisted equity ecosystem. The stock, which listed at Rs 835 and hovered at Rs 845 on Friday, delivered no meaningful upside for those who entered the market early at inflated prices.'HDB Financial's IPO was priced at Rs 740, sharply below its grey market valuation of Rs 1,250–Rs 1,300. The 40%+ discount has surprised many investors,' said Gaurav Garg from Lemonn Markets. 'However, the valuation, implying a price-to-book of ~3.7x, is largely in line with listed NBFC peers like Shriram Finance (P/B ~2.4x) and well below Bajaj Finance (P/B ~6.3x).''As one investment banker noted, 'We have no influence on what is happening on the unlisted side.' In that light, the IPO price is not a case of underpricing, but rather a reflection of realistic, market-aligned valuation,' Garg Agrawal, Head of Fundamental Equity Research at SBI Securities, said 'the HDB IPO at Rs 740 vs Rs 1,250 grey market signals a necessary valuation reset in the unlisted space. Rising NPAs from MSME stress and slowdown in auto over recent quarters likely influenced pricing discipline, bringing expectations closer to listed market realities.'The deep discount in HDB Financial's IPO pricing signals more than just a one-off mispricing, said Anirudh Garg, Partner and Fund Manager at INVasset PMS, adding that "it reflects a broader recalibration in unlisted valuations driven by a divergence between private market optimism and listed market discipline."NSDL shares, which were trading at around Rs 1,275 in June, have declined to around Rs 1,025, a near 20-21% fall, after Securities and Exchange Board of India (Sebi) extended its IPO listing deadline from April 2024 to July 2025. The move dampened investor sentiment further, following the HDB debacle.'The 21% correction in NSDL was partly driven by the Sebi nominee rule extension, with additional pressure from HDB's weak listing and sentiment spillover from the NSE–Jane Street developments,' said from Lemonn Markets noted, 'NSDL's fundamentals remain intact, with a trailing P/E of ~60x, still reasonable compared to listed peer CDSL (~70x). The correction, therefore, appears more rooted in market psychology and the recalibration of IPO expectations than in company-specific risk.'Anirudh Garg pointed to the grey market's sensitivity to exit timelines. 'Investors in the unlisted space often anchor to a near-term liquidity event; once that timeline extends, enthusiasm deflates… The correction is equally a reflection of investors repricing duration risk and resetting expectations for exits,' he unlisted shares of NSE, India's dominant exchange in equity derivatives, have declined nearly 10% from their recent high of Rs 2,400, with traders growing cautious after the Sebi barred U.S.-based Jane Street from local markets. Sebi accused the global trading firm of misleading retail participants through index manipulation, a charge Jane Street has episode has stoked fears that Sebi could tighten trading rules, leading to lower volumes in derivatives, the segment that generates nearly two-thirds of NSE's Rs 171 billion in revenue. The sell-off in NSE's unlisted stock mirrors a 12% decline in the listed shares of BSE Ltd, and a drop in other Indian capital market firms.'The correction in NSDL was partly driven by… sentiment spillover from the NSE–Jane Street developments,' said Sunny Agrawal of SBI Jane Street curbs came just as NSE was gaining momentum for a long-awaited IPO. Its shares had rallied in the unlisted market to Rs 2,400 after it moved to settle a regulatory case that had derailed its listing plan since 2016. At that level, NSE's valuation of about $69 billion had surpassed global peers like Deutsche Boerse AG and Nasdaq Inc, according to a Bloomberg Capital's announcement of a rights issue at Rs 343, far below its unlisted market price of Rs 1,075, has added to concerns. The steep 64% discount came as a jolt to investors who had assumed the stock would list near prevailing private market said that 'Tata Capital's rights issue at Rs 343 vs Rs 1,075 reflects moderation in exuberance. The rights pricing indicates a move towards fairer value zones after an overvalued phase.'Gaurav Garg pointed out that the unlisted market implied a P/E of over 100x and a P/B of ~18x for Tata Capital, compared to Bajaj Finance's P/E of ~34x and P/B of ~5.9x. 'The discounted rights issue was a deliberate effort to cool overheated valuations ahead of IPO plans,' he said.'A PE multiple of 100x on unlisted trades was already signalling froth… The rights issue at just Rs 343 suggests that even the parent isn't willing to validate such lofty valuations,' Anirudh Garg IPO-bound firms have also taken a hit. Vikram Solar's shares are down 21% to Rs 375, while Hero Fincorp fell 9% to Rs 1,595. Gaurav Garg observed that Hero Fincorp and Vikram Solar were trading at trailing P/Es of ~185x and ~149x, respectively—multiples that are 'exceptionally high for the current environment.''These are not isolated events. Analysts believe we are in the early stages of a broader valuation reset,' he said. 'The grey market has already responded with notable corrections… Sentiment is shifting from FOMO-driven buying to cautious revaluation.'Anirudh Garg echoed the sentiment and said 'valuation compression is not just probable—it's necessary. These levels reflect exuberance from a time when liquidity was abundant and exits seemed imminent.''The recent correction appears more structural than cyclical. It marks a shift from speculative pricing toward fundamentals-led valuation,' said Garg.'Euphoria in unlisted markets in terms of valuations seems to be waning… Investors should be watchful of valuations and growth potential before buying stocks in unlisted markets,' said Sunny Agrawal, summing up the broader some companies may continue to command a premium, analysts say the unlisted space is transitioning from scarcity-led pricing to one where public market benchmarks increasingly anchor expectations.'Eventually, pricing will stabilize at more rational levels, separating structurally strong businesses from hype-driven plays,' said Anirudh Garg. Until then, the correction in NSE, NSDL and others is likely to keep investors cautious.: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
Independent Singapore
21 hours ago
- Business
- Independent Singapore
Singapore HDB flats dubbed most 'attainable' homes among APAC's capital cities, but netizen says 'must compare until it's affordable'
Photo: Depositphotos/tang90246 Featured News Property Singapore News SINGAPORE: Singapore's Housing & Development Board (HDB) flats have been named the 'most attainable homes' among Asia Pacific's (APAC's) capital cities, according to the 2025 Urban Land Institute (ULI) Asia Pacific Home Attainability Index. While it sounds like good news, many locals questioned what 'attainable' really means in Singapore, with one netizen remarking, 'Must compare to other countries until it's affordable.' Singapore Business Review reported that ULI defined 'attainable' housing as homes costing no more than five times the median annual household income, which is consistently met by HDB flats. Notably, among 51 urban housing markets surveyed, only seven were found to offer attainable home ownership, and Singapore's HDB system was the only one in a national capital. Despite rising urban costs across the region, the report found that the city-state's public housing system, which houses 80% of the population, remains within reach for median-income Singaporean households, compared to those in Hong Kong, Tokyo, or Sydney. See also Speaker of Parliament Tan Chuan-Jin's family adopts stray kitten Still, some Singaporeans online said the housing prices in the city-state continue to rise. One said HDB flats are 'public housing, yet prices are so high.' Another wrote, 'Our HDB flats are getting so costly. I worry for the future generations. They will be slaves to the flat for the rest of their lives.' One commenter also pointed to the shrinking sizes of homes in the city-state, saying, 'Look at the new flat sizes. It is not liveable at all. Look up at the windows of the nice new flats. So many clothes [are] hanging there because [there is] no proper laundry space!' The ULI report explained, pointing to Singapore's HDB system, that 'Operating a similar scheme is more difficult in countries where the government has less control of freehold land.' While many cities in APAC face rising prices, limited land, and speculative demand, Singapore's centrally planned and subsidised housing has helped keep home ownership within reach for citizens, although access remains limited for non-citizens due to the 60% Additional Buyer's Stamp Duty on foreign buyers. /TISG Read also: 'Why Indonesia?': Singaporean couple share 5 reasons why they moved after their HDB MOP Featured image by Depositphotos (for illustration purposes only) () => { const trigger = if ('IntersectionObserver' in window && trigger) { const observer = new IntersectionObserver((entries, observer) => { => { if ( { lazyLoader(); // You should define lazyLoader() elsewhere or inline here // Run once } }); }, { rootMargin: '800px', threshold: 0.1 }); } else { // Fallback setTimeout(lazyLoader, 3000); } });
AsiaOne
2 days ago
- AsiaOne
4 women arrested in Yishun for allegedly offering sexual services disguised as massages, Singapore News
Nestled in a densely-populated area in Yishun, lay two unassuming massage parlours where some employees were allegedly providing sexual services to customers. During an operation that took place on June 30, officers from the Woodlands Police Division raided the two establishments simultaneously. AsiaOne was among the media invited to visit the scenes where three women aged between 23 and 35 were arrested for allegedly providing sexual services under the guise of massages. One of them was a Singapore Permanent Resident while the remaining two were foreigners. The two massage parlours were located on the first floor of an HDB block, surrounded by a dental clinic, a musical enrichment centre for children, a traditional Chinese medicine clinic as well as two minimarts and a coffeeshop. Upon entering the first parlour, two massage beds — separated by a blind — and three couches can be seen in the reception area. Two female employees were seated on one of the beds. While they looked down and avoided eye contact with members of the media, the pair did not attempt to cover their faces. Another employee was seated on the couch furthest from the entrance, waiting to have her statement taken, while a fourth woman was standing at the back of the establishment with an officer. A total of five female employees were observed in the parlour at the time of the raid. A few steps further into the unit revealed three private rooms separated by blinds, each with one massage bed and a rack of various massage oils. Two men, purportedly customers getting massages at the time of the raid, were seated on the beds inside two adjacent rooms, giving their statements to the police officers. A folder with sheets of paper, seemingly appointment logs, was also seen at the establishment's reception table. Different appointment slots for the day were handwritten in two colours of ink — red and blue — beside the names of various masseuses working at the parlour. Two e-vapourisers were also found in the outlet. Only individual rooms at second parlour Members of the media were also invited to the second raid location in Yishun after police investigations concluded. This was a larger massage establishment, occupying two floors. It also appeared more high-end compared to the first outlet, with wooden flooring and its interior painted in neutral shades. This parlour only had private rooms, each with an attached shower area and one bed. There were three such rooms on the first floor and seven on the second. When one member of the media shone an ultraviolet light at a cupboard in one of these rooms, he uncovered some stains which had seemingly been cleaned off. While certain bodily fluids such as urine and semen which have been cleaned off can glow under UV light, some fragrances and oils also leave marks. Parlour stayed open after hours: Resident While the area was generally quiet, some curious residents watched as the arrested women were taken into a waiting police van. One Yishun resident, who wished to be known as Ang, told AsiaOne that she had been suspicious of one of the massage parlours as it would often stay open past its listed hours. "There (were) also a lot of women going in and out of there late at night," said the 25-year-old accountant who has been living in the area her whole life. She also said that this massage establishment, where two employees were arrested, started operating about three months ago, while the other has been around for a few years. Ang expressed concern regarding the alleged illicit activities, explaining that many families with young children live in the area as it was near schools. Speaking to media, Woodlands Police Division Commander, Assistant Commissioner of Police Tan Chi Chong said that four suspects had been arrested for allegedly providing sexual services under the guise of massages. The fourth suspect was arrested at a different location in Yishun which was not disclosed to the media. "The message from tonight's operations is clear: such illegal activities have no place in our society, and we will not hesitate to take strong enforcement actions to uphold our law and order," he said. Over 2,445 investigated in islandwide operation This raid was among a series of anti-vice operations at multiple locations between May 20 and June 30 by officers from the Specialised Crime Branch of the Criminal Investigation Department (CID), all seven Police Land Divisions and Immigration and Checkpoints Authority (ICA), said the police on July 11. During these raids, two men and 316 women aged between 19 and 63 were arrested for various offences. The two men were arrested for allegedly abetting vice activities. These anti-vice raids were part of islandwide multi-agency enforcement operations which took place from May 20 to July 7, involving all seven Police Land Divisions, Traffic Police and CID. They were supported by officers from the Central Narcotics Bureau, ICA, Singapore Civil Defence Force, Health Sciences Authority, Singapore Customs and Land Transport Authority. A total of 1,401 men and 1,044 women, aged between 15 and 84, are being investigated for various offences following the operations, which are part of the Singapore Police Force's ongoing efforts to target illegal and criminal activities island-wide, said the police. Senior Assistant Commissioner Gregory Tan, director of the police's operations department, said that the seven-week-long operation "exemplifies the police's commitment to public security". "Through effective collaboration with our law enforcement partners, we have taken decisive action against those who disregard the law. Our stance is unwavering: those who break the law will face firm enforcement action," he added. [[nid:719610]]
Straits Times
2 days ago
- Business
- Straits Times
Singapore one of the few major cities in Asia-Pacific region to offer attainable homes: Report
Sign up now: Get ST's newsletters delivered to your inbox The median price of an HDB flat in 2024 was US$439,348 (S$562,402), down from US$461,289 in 2023, the report said. SINGAPORE - Singapore is one of the few major cities in the Asia-Pacific region to offer attainable homes for purchase, a new report from the Urban Land Institute (ULI) has found. The ULI, a global non-profit research and education organisation, considers home ownership attainable when the ratio of median home prices to median annual household income is below 5. The price-to-income ratio of Housing Board flats in 2024 was 4.3, down from 4.7 in 2023. In 2022, the price-to-income ratio of HDB flats was 3.7. Of the 51 market segments studied in the report on home attainability across the Asia-Pacific region, published on July 9, only three major cities had homes with a price-to-income ratio of 5 and below in 2024. These comprised HDB flats in Singapore, and apartments in Melbourne in Australia and Kuala Lumpur in Malaysia. The median price of an HDB flat in Singapore was US$439,348 (S$561,900) in 2024, down from US$461,289 in 2023. The report did not specify if the price factored in HDB grants. Across the cities tracked by the ULI, median annual household income was highest in Singapore at US$101,666. Top stories Swipe. Select. Stay informed. Singapore S'pore boosts nuclear viability, safety research with new institute and $66m in additional funding Singapore NDP 2025: Leopard tank transmission fault identified, vehicle to resume role in mobile column Singapore Over 12,000 lower-income households to receive $60 in transport vouchers by end-July World Trump nominates 'alpha male' influencer to be ambassador to Malaysia Business CEO pay: At Singapore's top companies, whose pay went up and who saw a drop? Business Popiah king Sam Goi makes $123.5 million offer to buy rest of PSC Singapore Youth who performed lewd act on cat ordered to undergo probation Life Singer Jacky Cheung adds 3 more encore concerts in Singapore, bringing total to 6 shows Despite this, Singapore is not the most affordable location for home buying, as apartments in Perth in Australia have a price-to-income ratio of 4.1, the ULI said. But it noted that nearly 80 per cent of the Singapore population live in HDB flats, and only 7.6 per cent of homes in Perth are apartments. No city scored a price-to-income ratio of below 4 in 2024. The ULI said that while the number of HDB flats built has passed 1.2 million units, the pace of development has been 'relatively slow' in recent years, and it remained static during the Covid-19 pandemic. 'This may explain rising prices and falling attainability,' the ULI said. The disruptions caused by the Covid-19 pandemic slowed the construction of Build-To-Order (BTO) flats and crimped the supply of public housing here, causing prices to rise. HDB resale prices have been rising continuously on a quarterly basis since the second quarter of 2020. Efforts have been made by the authorities to ramp up housing supply , with the HDB exceeding its target of launching 100,000 BTO flats from 2021 to 2025. It will put up 50,000 units for sale from 2025 to 2027. As for HDB flat rentals, the ULI said the average rent was at an attainable level of 29 per cent of the median monthly household income. The report considers rent to be attainable when it is below 30 per cent of median monthly income. The ULI said that HDB rentals were relatively expensive compared with other Asia-Pacific cities, but they were still considerably cheaper than private homes in Singapore, whose median monthly rents were 43 per cent of median monthly income. Private residential homes in Singapore continued to be the most expensive in the Asia-Pacific for the third year in a row, with an average price of US$1.7 million. The price-to-income ratio for these homes was 16.9. In terms of price per square metre, however, Hong Kong was the most costly private housing market in the region, with an average price of US$16,915 per sq m. Apartments in Hong Kong are smaller on average, at 45 sq m, compared with 109 sq m in Singapore, the report noted. The ULI said that both rents and prices of private homes in Singapore have risen sharply in recent years, but prices have outpaced rents, more than doubling since 2009. Rent for private apartments in Singapore was the most expensive across the cities studied by the ULI, with a median monthly rent of US$3,676. This overtook Hong Kong (US$2,766), as well as other high-cost-of-living cities such as Sydney (US$1,997) and Seoul (US$769).
