NSDL IPO oversubscribed by 41 times, reaching Rs 1.1 trillion in bids

The NSDL IPO sees over 40 times more demand than shares on offer, with institutional and retail portions heavily oversubscribed. The issue is a secondary share sale by major institutions

The IPO of National Securities Depository Ltd (NSDL), the country’s largest depository in terms of assets, saw over 40 times more demand than the shares on offer, with bids exceeding Rs 1.1 trillion. The qualified institutional buyer (QIB) portion of the issue was subscribed 104 times, the high net worth individual (HNI) portion 35 times, and the retail portion nearly 8 times.

 

The Rs 4,000-crore IPO was entirely a secondary share sale by six institutions, including IDBI Bank, NSE, HDFC Bank, and SBI.

 

The company has set a price band of Rs 760-800 for the IPO. At the top end, the issue size values NSDL at Rs 16,000 crore. Depository firms, which enable holding shares and other securities in demat accounts, are considered market infrastructure institutions (MIIs). The depository space is a duopoly, with the other player being Central Depository Services (India) Limited (CDSL), currently valued at Rs 30,972 crore.

 

As of June, NSDL managed 40.5 million demat accounts with a custody value of Rs 512 trillion, while CDSL managed 159 million accounts with a custody value of Rs 79 trillion. 

 

NSDL was priced at about 47 times its FY25 earnings, at a discount to CDSL, which trades at a price-to-earnings ratio of 68x.

 

Analysts say CDSL enjoys better valuation due to its superior revenue and profit growth rate, better margins, and strong retail presence.

 

Market players noted that both NSDL and CDSL offer unique business models, enjoy a regulatory moat, and are crucial players in the growth of the domestic capital market ecosystem. 

Sri Lotus Developers public issue booked 69.14x 

The initial public offering (IPO) of Sri Lotus Developers and Realty Ltd, backed by Bollywood stars and renowned investor Ashish Kacholia, was subscribed 69.14 times on the final day of bidding on Friday. The initial share sale received bids for 2,741,869,400 shares against 39,658,730 shares on offer, according to NSE data.

 

Shanti Gold shares up over 15% in debut trade 

Shares of Shanti Gold International on Friday ended with a premium of over 15 per cent against the issue price of ₹99. The company’s stock started trading at ₹229.10, a jump of 15.12 per cent from the issue price on the BSE.