NSDL shares list at a 10% premium to issue price

Following a healthy subscription, shares of Securities Depository Ltd. (NSDL) made their Dalal Street debut on Wednesday, August 6. The stock listed at ₹880 per share, which is a premium of 10% compared to its issue price of ₹800 per share.

The grey market premium (GMP) for shares of NSDL has seen some fluctuations and was currently trading at around ₹125, which indicated a potential listing gain of 16% over the issue price of ₹800.

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.

Tapse has advised 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.

“The market is valuing NSDL favourably beyond the IPO price, driven by optimism about its long-term growth," said Bhavik Joshi, Business Head, INVasset PMS.

NSDL sold shares at ₹800 apiece to investors during the three-day IPO, which was purely an Offer for Sale (OFS).

This means that the company will not receive any proceeds from the issue. Existing shareholders are expected to make gains of up to 400x on their original investment.

Considering the upper end of the price band, NSDL will command a market capitalisation of around ₹16,000 crore, with listing slated exclusively on the BSE.

The ₹4,011 crore IPO of NSDL resulted in healthy subscription figures, with institutional and retail investors both placing their bets on the company's prospects.

The three-day issue was subscribed 41 times the total number of shares on offer, getting bids worth over ₹1.1 lakh crore from investors.

Institutions led the charge, placing bids for nearly 104 times the total number of shares on offer for them. The portion reserved for non-institutional investors was subscribed 35 times, while the portion for retail investors was also subscribed eight times the total number of shares on offer.

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).

The listing of NSDL will make it the second depository service provider to be listed on the exchanges after its peer Central Depository Services Ltd. (CDSL).

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