NSDL IPO opens with GMP at 16%: Should you bid?
What's the story
The National Securities Depository Limited (NSDL) has launched its initial public offering (IPO). The issue is an Offer for Sale (OFS) of 50.14 million equity shares worth up to ₹4,011.6 crore. The shareholders participating in the OFS include major financial institutions such as IDBI Bank, HDFC Bank, SBI, Union Bank of India, and the Administrator of the Specified Undertaking of the Unit Trust of India (SUUTI).
Investment specifics
Retail investors can bid for a minimum of 18 shares
The NSDL IPO is priced between ₹760 and ₹800 per share with a lot size of 18 shares. This means investors can bid for at least one lot (18 shares) and in multiples of it. A retail investor would need at least ₹14,400 to invest in one lot (18 shares) of NSDL, while the maximum investment for 13 lots (234 shares) would be around ₹1,87,200.
Analyst recommendations
Analysts' recommendations on NSDL IPO
Market analysts have largely given a thumbs up to the NSDL IPO, citing its fair valuation compared to its only listed competitor, Central Depository Services (India) Limited (CDSL). The company has already raised ₹1,201 crore from anchor investors ahead of the IPO opening. At the time of writing, the gray market premium for the IPO stood at 16%. Canara Bank Securities and Angel One have given a 'Subscribe' rating to the NSDL IPO with a medium- to long-term investment horizon.
Growth prospects
NSDL to focus on growth opportunities, expand market presence
Analysts at Anand Rathi Research have said that NSDL will continue to focus on growth opportunities and expanding market presence through its core competencies. The company plans to upgrade its IT infrastructure, improve operational efficiency, service standards, resilience as well as expand its service offerings and database management capabilities. At the upper price band of ₹800 per share, NSDL is valued at a post-issue P/E of 47x FY25 earnings.