NSDL stock jumps 78% from IPO price: Gains in all sessions since debut- what should investors do?
NSDL shares have been a big money-maker for the investors with the prices surging by nearly 80% from its IPO price. In a significant post-market debut, surged over 9.6% on Monday alone, touching a peak of Rs 1,425.The stock has experienced a significant increase, rising 78% above its initial IPO price of Rs 800 and 62% above its listing price of Rs 880.NSDL has shown positive performance in all four trading sessions since its August 6 debut, indicating strong market interest.Following the substantial post-listing gains, investors are looking at potential next steps.“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, as quoted by ET.“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,” further said Garg.The Rs 4,012 crore offer for sale IPO received strong response with 41.02 times subscription, including 103.97 times from Qualified Institutional Buyers, 34.98 times from Non-Institutional Investors, and 7.76 times from retail investors.The company secured Rs 1,201.44 crore through anchor allocations before the IPO, demonstrating strong institutional interest.As a SEBI-registered Market Infrastructure Institution, NSDL provides services including demat operations, trade settlements, e-voting, pledge management, and corporate actions.The company serves 3.94 crore active demat accounts through 294 depository participants as of March 2025. Its subsidiaries, NSDL Database Management and NSDL Payments Bank, provide e-governance and digital financial services.In FY25, NSDL reported revenue growth of 12% to Rs 1,535.19 crore and profit after tax increase of 25% to Rs 343.12 crore. The IPO was valued at a P/E of 46.63 and price-to-book value of 7.98, which some analysts consider high.
