NSDL extends rally after strong debut, up 25% against issue price in 2 days

Shares of National Securities Depository Limited (NSDL) hit a new high of ₹997.65 in intra-day trade, zooming 25 per cent against its issue price of ₹ 800 per share in two days.

National Securities Depository Limited (NSDL) share price today

 

Shares of National Securities Depository Limited (NSDL) hit a new high of ₹997.65, as they rallied 7 per cent on the BSE in Thursday’s intra-day trade in an otherwise weak market. NSDL made a strong listing as the stock rose 17 per cent on its debut day on the BSE on Wednesday. The stock price of NSDL has zoomed 25 per cent against its issue price of ₹800 per share.  READ STOCK MARKET LIVE UPDATES TODAY

Strong response for initial public offer (IPO) - NSDL

 

NSDL ₹4,011 crore initial public offer (IPO) was subscribed 41 times. The institutional investor portion was subscribed 104 times, the wealthy investor portion 35 times, the retail investor portion nearly 8 times. The IPO was entirely an offer for sale issue. The selling shareholders included IDBI Bank, National Stock Exchange of India (NSE), and four other institutions.

 

The IPO was necessitated as the Securities and Exchange Board of India (Sebi) norms prohibit any single entity from owning more than 15 per cent stake in any market infrastructure institution.

 

With this, NSDL became the second listed depository in India, after its counterpart Central Depository Services (India), which went public in 2017.  ALSO READ | PVR Inox jumps 5% on strong Q1, analysts see further upside; time to buy?

Brokerages view on NSDL

 

NSDL’s core depository services provide a steady source of recurring revenue and stability to their business model. Revenue from annual fees and custody fees is considered a more stable and recurring source of revenue due to its lesser dependence on market cycle compared to revenue from transaction charges.

 

Depository market in India grew at rapid pace in last few years, securities such as common equity shares, preferential shares, mutual fund units, debt instruments, government securities, certificates of deposit, commercial papers and others are available to be held in electronic or dematerialized (demat) form by the investors. The number of companies having their securities in demat form have seen an sharp upsurge from 17,835 in FY17 to 79,773 in FY25 seeing a growth at 20.6 per cent compounded annual growth rate (CAGR) for NSDL and 9,887 to 35,922 from FY17 to FY25 growing at a 17.5 per cent CAGR for CDSL.

 

Currently, NSDL holds a higher share compared to CDSL amongst the two depositories across the number of companies available for demat; the quantity and value of securities held in demat form, according to ICICI Securities.

 

Considering its dominant share in the assets under custody (AUC), rapid growth in financials, stable revenue stream, healthy return ratios and focus on digital infrastructure expansions ahead, analysts at Geojit Investments had a ‘Subscribe’ rating with a long-term investment perspective.

 

The Indian capital market has witnessed a growth at a fast pace between FY17 till FY25. As the first and leading depository in the country, NSDL introduced the concept of dematerialization of securities, revolutionizing the securities landscape in India. NSDL is the largest depository in India in terms of number of issuers, number of active instruments, market share in demat value of settlement volume and value of assets held under custody as of March 31, 2025. The depository market in India grew at a rapid pace in the past 3 years, the brokerage firm said.  ALSO READ | Adani Group stocks trade weak; Adani Green, Power, Enterprises down upto 3%

About National Securities Depository Limited (NSDL)

 

NSDL, incorporated in 1996 is India’s first and one of the largest depositories, playing a pivotal role in digitalization of securities through offering a wide range of products and services to the financial and securities market.

 

NSDL provides a robust depository framework that enables market participants to participate in the financial and securities markets in India. They also play a central role in developing products and services that will continue to address the growing needs of the financial services industry.