NSDL IPO: Latest Updates, Listing Strategy, and Financial Insights
Welcome to an in-depth look at the NSDL IPO. This article will cover the latest updates regarding its Grey Market Premium (GMP), potential listing day strategies, and opportunities that may arise in the future. For daily IPO and GMP updates, ensure you stay connected.
NSDL IPO Allotment Details and Share Distribution
The total issue size of the NSDL IPO saw a specific distribution among different investor categories. Qualified Institutional Buyers (QIBs) were allocated approximately 50% of the shares, which amounts to about 2.05 crore equity shares out of the total issue size of 411 crore. This translates to roughly 2000 crore worth of shares for QIBs.
Following QIBs, the HNI (High Net Worth Individual) category received about 15% of the shares, specifically 75.91 lakh equity shares. Retail investors were allocated approximately 35% of the total issue size, or about 1.75 crore equity shares. A total of 97,388 retail investors received allotment in this IPO.
A significant point of concern is the high number of shareholders, exceeding 9 lakh even before the IPO. This could potentially lead to panic selling by retail investors if there’s a market downturn or if the company’s listing performance isn’t strong, potentially creating selling pressure. However, if retail investors have long-term faith in the company’s performance, holding shares could lead to positive momentum even after significant dips.
Anchor Investor Lock-in and Key Dates
Anchor investors were allocated shares worth 1201 crore on July 29th. For 50% of these shares, valued at approximately 600 crore, anchor investors will have the opportunity to sell them on September 3rd, which is 30 days post-allotment. The remaining 50% of shares will have their selling opportunity on November 2nd. Therefore, September 3rd and November 2nd are important dates for long-term investors to keep in mind.
Financial Performance and Growth
NSDL has demonstrated strong year-on-year financial growth. The company’s income was 1099 crore in 2023, increasing to 1365 crore in 2024 despite a market slowdown, and further growing to 1535 crore in 2025.
Similarly, the company’s Profit After Tax (PAT) has shown consistent improvement: 234-235 crore initially, rising to 275 crore, and currently standing at 343 crore. This consistent profitability suggests further improvements, especially if the market continues its upward trend, directly benefiting NSDL’s business model, similar to CDSL.
Key financial ratios include a Return on Equity (ROE) of 17%, Return on Capital Employed (ROCE) of 22.7%, and Return on Net Worth (RONW) of 17.11%. The Profit After Tax Margin is 22.35%; an improvement to 25% would be considered excellent. Strong Q1 results could help justify the current valuation.
Valuation and Competitive Landscape
When compared to its peer, CDSL, which is already listed and has generated significant wealth for its shareholders, NSDL presents an interesting valuation. CDSL currently has a Price-to-Earnings (P/E) ratio of 68, while NSDL’s pre-IPO P/E stands at 44, making it appear attractive valuation-wise.
However, with a cut-off price set at ₹800, the company’s valuation quickly aligns with its competitor. Had the cut-off price been closer to ₹700, the IPO’s Grey Market Premium (GMP) would likely have seen a more substantial improvement. The relatively high cut-off price has meant that while the GMP shows strength, it hasn’t been exceptionally spectacular.
NSDL IPO Listing Day Strategy
For those who received an allotment in the NSDL IPO, a potential strategy involves holding a portion of the allotted shares while selling others. For the shares intended for holding, one could use the low point between 10:00 AM and 10:30 AM on the listing day as a strict stop-loss. If the share price closes below this low on the same day, exiting the position could be considered. If it closes above, the next day’s low could then be used as the stop-loss, continuing this trailing stop-loss approach.
For investors who did not receive an allotment but are interested in NSDL, an attractive long-term entry point could be if the share price drops to ₹700 or below. Short-term traders looking to enter on listing day might consider using the low formed between 10:00 AM and 10:15 AM as a strict stop-loss.
Grey Market Premium (GMP) and Listing Outlook
The current Grey Market Premium (GMP) for NSDL IPO is ₹130. Based on the cut-off price of ₹800, this suggests an expected listing price of approximately ₹930. This translates to an estimated listing gain of around 16%, potentially yielding about ₹2400 per lot.
A positive closing in the US market today and a strong positive opening and trading day for the Indian market tomorrow could lead to a listing that exceeds current GMP expectations.
Conclusion
NSDL is fundamentally a strong company with excellent long-term prospects. However, at the current cut-off price, the valuation might not offer immediate comfort. For long-term investors, acquiring shares around or below ₹700 could present a more attractive value proposition. Stay tuned for further updates on the Grey Market Premium or any other developments regarding the NSDL IPO.
