The shares of National Securities Depository (NSDL) gained nearly 19 percent on August 8, extending massive gains for the third consecutive session since market debut. The shares of the company are now more than 68 percent higher than the IPO price.
The shares have now gained nearly 52 percent in the three sessions since their market debut. The market capitalization of the company surged significantly in the first three days to cross Rs 26,000-mark.
The shares of NSDL had made a decent stock market debut on August 6, listing at Rs 880 apiece on BSE. This marked a premium of 10 percent over its IPO price at Rs 880 apiece. The listing premium was lower than grey market estimates.
Ahead of listing, the unlisted shares of the company were trading with a grey market premium of nearly 16 percent over the IPO price. According to analysts, investors should consider holding the stock for the long term, given NSDL’s strong fundamentals and leadership in the depository segment.
NSDL’s P/E ratio currently stands at around 77, higher than that of peer CDSL whose P/E ratio currently stands at around 66.
"NSDL’s post-listing performance has been nothing short of remarkable, with the stock rallying over 48% in just three sessions and market capitalisation crossing ₹25,000 crore. This surge underscores the market’s conviction in NSDL’s entrenched position within India’s capital market infrastructure. As one of only two depositories operating in a near-duopoly alongside CDSL, NSDL enjoys strong pricing power, high entry barriers, and a dominant share in value-based transactions and institutional account holdings," said Bhavik Joshi, Business Head, INVasset PMS.
He noted that the stock's current P/E multiple of around 77 may appear stretched when compared to CDSL’s 66, but investors are clearly willing to pay a premium for its scale, technology backbone, and long-standing trust within the ecosystem. "That said, prospective investors should be mindful of certain structural risks — dependence on transaction volumes, evolving investor participation patterns, and the ever-present cybersecurity and regulatory compliance requirements. In the near term, valuations may moderate if market activity slows, offering potential entry points for those who missed the IPO," he added.
Siddharth Maurya, Founder & Managing Director of Vibhavangal Anukulakara Private Limited, meanwhile said, "NSDL's strong post-listing rally...demonstrates strong investor belief in its market infrastructure position. As a core institution in India's financial system, NSDL's strong fundamentals and leadership position are obviously striking a chord with institutional and retail investors alike."
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Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.
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