NSDL IPO closes with 41x subscription, QIB portion booked 104x; GMP signals decent listing

NSDL IPO closes with 41x subscription, QIB portion booked 104x; GMP signals decent listing

The Rs 4,011-crore initial public offering of National Securities Depository Ltd (NSDL) continued to see strong investor interest on its third and final day of public bidding. The IPO closed for on August 1 after being subscribed 41 times its offer size.

The maiden share sale of the company received bids for more than 144 crore shares, as against the offer size of 3.51 crore shares, according to data on NSE. Non Institutional Investors (NII) booked their reserved portion nearly 35 times. Retail Individual Investors (RII) subscribed the portion kept for them nearly 8 times, while employees booked their reserved portion more than 15 times. Qualified Institutional Buyers (QIBs) lead the subscription rally by booking their reserved portion nearly 104 times.

Ahead of listing, the unlisted shares of the company were trading with a grey market premium (GMP) of more than 16 percent over the IPO price at Rs 925 apiece, according to data on Investorgain. The GMP has slightly fallen from the 17 percent which was quoted yesterday.

NSDL, which is one of the largest securities depositories in the world, launched its IPO to raise Rs 4,012 crore from the capital markets at a price band of Rs 760 to Rs 800 per share. The IPO entirely comprised an offer for sale with no fresh issue component.

Investors could bid for a minimum of 18 shares, requiring an investment of Rs 14,400, and in multiples thereafter. The allotments will likely be finalized on August 2, and the shares are scheduled to debut on the stock markets on August 6. Since the public issue is entirely an OFS, NSDL will not receive any proceeds from the IPO.

At the upper end of the price band, NSDL's maiden public issue is expected to fetch Rs 4,011 crore, valuing the company at Rs 16,000 crore.

This upcoming listing will make NSDL the country's second publicly traded depository after Central Depository Services (CDSL), which was listed on the NSE in 2017.

The listing of NSDL is crucial in order to comply with SEBI's ownership norms. These regulations require that no entity can hold more than 15% of the shareholding in a depository company.

ICICI Securities, Axis Capital, HSBC Securities and Capital Markets (India), IDBI Capital Markets & Securities, Motilal Oswal Investment Advisors and SBI Capital Markets were the book running lead managers to the issue.

Also read: NSDL IPO turns early bets into goldmine for SBI, NSE, HDFC Bank

Should you apply to NSDL IPO?

The IPO appeals to investors seeking long-term exposure to India’s capital market infrastructure, said Kalp Jain, Research Analyst, INVasset PMS. “Investor sentiment has been strong, with a grey market premium of Rs 135–140 pointing to expected listing gains of 17%. While regulatory scrutiny—particularly past issues linked to Karvy — and rising competition from CDSL remain watchpoints, NSDL’s institutional franchise, steady annuity-like cash flows, and sectoral leadership offer a strong case for anchor allocations,” he said.

Bajaj Broking advised investors to subscribe to the public issue for the long term. “NSDL is engaged as a pioneer in depository services in India and is an ice breaker for the demat process. The company is expanding its horizon with more value-added services and options,” it said.

Angel One also advised investors to subscribe to the public issue for the long term. “National Securities Depository Limited (NSDL), established in 1996, is India’s first and largest central securities depository, and a critical infrastructure institution for electronic securities settlement and custody in the capital markets. NSDL is promoted by major Indian financial institutions including National Stock Exchange (NSE), IDBI Bank, and UTI, and maintains high compliance standards under SEBI regulation,” the domestic brokerage said.

Ajcon Global advised investors to 'Subscribe' to the issue. “NSDL, India's pioneering depository, opens its doors to public investors. Backed by marquee institutions, this Offer for Sale marks a landmark listing in the financial infrastructure space. At the upper price band of Rs. 800, the issue is priced at a P/E multiple of 46.62 its FY25 post IPO EPS of Rs. 17.16,” it said.

A day before the IPO opened for public bidding, the company raised Rs 1,201.4 crore from 61 institutional investors via anchor book on July 29. Marquee global investors invested in NSDL via anchor book were Smallcap World Fund, Government Pension Fund Global, Abu Dhabi Investment Authority, Ashoka Whiteoak, Florida Retirement System, Allianz Global, Manulife Global Fund, Tocu Europe, Amundi Funds, and Eastspring Investments.

Several domestic institutional investors like Life Insurance Corporation (LIC), SBI Mutual Fund, ICICI Prudential Mutual Fund, Whiteoak Capital, HDFC AMC, Fidelity Funds, Nippon Life, Aditya Birla Sun Life AMC, Axis Mutual Fund, UTI AMC, SBI Life Insurance, Mirae Asset, HDFC Life Insurance, 360 ONE Equity Opportunity Fund, JM Financial MF, Tata Investment Corporation, and LIC MF also put their name in the shareholders list through anchor book investment.

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