Shares of National Securities Depository Ltd (NSDL) debuted on the Bombay Stock Exchange (BSE) on Wednesday at Rs 880, reflecting a 10 per cent premium, or Rs 80 above the issue price of Rs 800 per share. NSDL’s IPO share listing fell short of expectations in the grey market, which had anticipated that the scrips would be listed at a premium of around 16 per cent.
Shortly after listing, the stock reached an intraday high of Rs 920. As of 11.45 A.M., NSDL shares were trading at Rs 913.65, up 33 points or 3.82 per cent from its listing price.
The Rs 4,012 crore IPO saw strong participation from all investor categories. The overall issue was subscribed 41.02 times. Qualified Institutional Buyers (QIBs) led the subscription, oversubscribing 103.97 times, followed by Non-Institutional Investors (NIIs) at 34.98 times and retail investors at 7.76 times.
After NSDL’s listing, its rival Central Depository Services (India) Limited (CDSL) faced pressure on the stock market and its shares dipped to Rs 1,531.10, down 2.35 per cent for the day.
The company’s market capitalisation after the share listing reached Rs 17,600 crore.
Analysts recommend that investors consider long-term exposure to NDSL shares.
NSDL’s steady revenue streams and market leadership bolster the stock amid regulatory scrutiny and competition from CDSL.
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NSDL leads in value-based transactions and institutional account holdings, with robust technological infrastructure. It operates in a duopoly with CDSL in a business with high entry barriers for new competitors.
The stock depositary firm launched its IPO to raise Rs 4,012 crore from the capital markets, with a price band of Rs 760 to Rs 800 per share. The IPO consists solely of an offer for sale, with no new shares being issued. NSDL received no proceeds from the IPO.
NSDL’s listing was essential to meet SEBI’s ownership requirements. No entity may hold more than 15 per cent of the shareholding in a depository company.
The IPO of NSDL, one of the largest securities depositories in the world, was entirely comprised of an offer for sale with no fresh issue component. NSDL did not receive any proceeds from the IPO.
The listing of NSDL was crucial to comply with SEBI’s ownership norms. These regulations require that no entity can hold more than 15 per cent of the shareholding in a depository company.
(This report has been published as part of the auto-generated syndicate wire feed. Apart from the headline, no editing has been done in the copy by ABP Live.)
