NSDL IPO: Will Listing on August 6 Soar?

Shares of National Securities Depository Ltd (NSDL) may deliver decent listing gains to investors on debut on Wednesday, August 6. Analysts expect the stock to list at around 12-15% premium over its IPO price of ₹800 per share.

Ahead of its debut, the shares of the company are trading at a premium of ₹124 in the unlisted market today.

The grey market is an unofficial ecosystem where shares start trading before the allotment in the IPO and continue till the listing day. Most investors track the GMP to get an idea of the listing price.

As per the current grey market trends, NSDL shares are expected to list with a premium of 15.50%. The issue was priced at ₹800 at the upper end.

Given the strong subscription levels and

prevailing market sentiment, Prashanth Tapse of Mehta Equities expects a decent listing gain in the range of 12-15%, or potentially higher, depending on market mood on the day of listing.

However, beyond the short-term listing pop, NSDL represents a compelling long-term proxy for the growth of institutional participation in Indian capital markets. Tapse has therefore recommended that allotted investors hold the stock from a long-term perspective, while non-allotted investors may wait and watch for a potential post-listing dip to enter.

Despite the broader market entering a zone of volatility in recent weeks, the NSDL IPO received strong investor interest. Demand was driven primarily by Qualified Institutional Buyers (QIBs) and Non-Institutional Investors (NIIs), while retail participation was relatively decent compared to other recent IPOs.

NSDL's ₹4,011-crore IPO was subscribed 41.01 times at close.

According to Tapse, the robust response is well justified from a long-term investment standpoint, given NSDL's dominant position in the Indian

depository ecosystem. NSDL stands out as the strongest player in the institutional segment, with a commanding share in custodial and depository services for mutual funds, insurance companies, banks, and foreign portfolio investors (FPIs).

The IPO, which was open for subscription from July 30 to August 1, was priced in the range of ₹760-₹800 per share.

The entire issue was an Offer for Sale (OFS), meaning NSDL will not receive any proceeds. Existing shareholders are expected to make gains of up to 400x on their original

investment.

Ahead of the IPO opening, the depository services provider raised ₹1,201 crore from anchor investors, including LIC and the Abu Dhabi Investment Authority (ADIA).