The blistering three-day rally has left investors weighing a classic choice: cash out while the gains are hot or hold on in hopes of a deeper run.
NSDL shares, which debuted on August 6 at Rs 880, a 10% premium to the issue price, have rallied sharply through the week. The stock hit an intraday high of Rs 920 on debut day, followed by a 20% jump on Thursday to Rs 1,123, where it hit the upper circuit on the BSE.
Strong demand, sound fundamentals
Investor appetite was evident from the outset. NSDL’s Rs 4,012 crore IPO, entirely an offer for sale, was subscribed 41.02 times, with Qualified Institutional Buyers leading the charge at 103.97 times. Non-Institutional Investors followed at 34.98 times and retail investors at 7.76 times. The company raised Rs 1,201.44 crore via anchor allotments on July 29, a reflection of strong institutional demand.
“We remain constructive on NSDL, given its leadership in the institutional depository segment and its significant role in offering custodial and depository services to mutual funds, insurers, banks, and foreign portfolio investors (FPIs). With a robust market position, steady revenue visibility, and reasonable valuations, we recommend a HOLD for investors who received allotments, keeping a long-term view in mind,” said Gaurav Garg from Lemonn Markets Desk.
“For those who did not receive an allotment, it would be prudent to await a market dip before considering fresh entry, especially amid prevailing market volatility,” said Garg.
Market infrastructure backbone
NSDL, a SEBI-registered Market Infrastructure Institution (MII), plays a critical role in India’s capital market ecosystem. It manages dematerialized securities and provides a suite of services including demat operations, trade settlements, e-voting, pledge management, and corporate actions. As of March 2025, the company handled 3.94 crore active demat accounts via 294 depository participants.
Its subsidiaries, NSDL Database Management and NSDL Payments Bank, help extend its footprint into e-governance and digital finance.
Founded in 2012, NSDL has built a reputation as the backbone of India’s securities depository infrastructure, rivaled only by Central Depository Services Ltd (CDSL) in the domestic market.
Solid financials, but valuations in focus
For FY25, NSDL reported a 12% rise in revenue to Rs 1,535.19 crore and a 25% increase in profit after tax to Rs 343.12 crore. The IPO priced the stock at a P/E of 46.63 and a price-to-book value of 7.98, levels that some analysts deem elevated.
“National Securities Depository Limited (NSDL) made quite a good, solid debut on the stock market,” said Shivani Nyati, Head of Wealth at Swastika Investmart, adding that “the company is expanding its horizon with more value-added services and options. The company posted steady growth in its top and bottom lines.”
Nyati further noted, “National Securities Depository Limited (NSDL) is SEBI-registered Market Infrastructure Institution and acts as a securities depository in India.”
What should investors do?
Analysts remain cautiously optimistic about the stock’s prospects. “Investors are advised to book partial profits near the listing level and retain some shares, possibly with a stop‑loss around Rs 850,” Nyati said.
NSDL’s strategic role in capital markets, solid financials, and expanding services may support longer-term gains, per analysts. For now, the debate turns to whether investors should pocket quick profits or hold on for more.
Also read | NSDL shares jump 20% to hit upper circuit on day 2 of trading. Time to lock in gains or hold on?
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)