NSDL shares surge 80% since IPO: Should you book profits?
What's the story
Shares of National Securities Depository Limited (NSDL) continued their stellar post-IPO rally on Monday, surging by 9.6% to a new high of ₹1,425. The stock has rallied a whopping 78% from its IPO price of ₹800 and 62% from its listing price of ₹880. The impressive performance reflects strong investor appetite since NSDL debuted on August 6.
Market analysis
'Hold' rating for long-term investors
Gaurav Garg from Lemonn Markets Desk has shared his views on NSDL's strong market position. He said, "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)." The expert recommends a 'Hold' for investors who received allotments, advising a long-term position.
Investment strategy
Advice for non-allotte investors
Garg also advised those who did not receive an allotment to wait for a market dip before considering fresh entry. This is especially relevant amid the current market volatility. NSDL's ₹4,012 crore IPO was fully subscribed 41.02 times with Qualified Institutional Buyers leading at 103.97 times followed by Non-Institutional Investors at 34.98 times and retail investors at 7.76 times.
Company profile
NSDL's business model and operations
NSDL is a SEBI-registered Market Infrastructure Institution that manages dematerialized securities and provides services like demat operations, trade settlements, e-voting, pledge management, and corporate actions. As of March 2025, it managed 3.94 crore active demat accounts through 294 depository participants. Its subsidiaries such as NSDL Database Management and NSDL Payments Bank extend its footprint into e-governance and digital finance.
Financials
Financial performance and valuation metrics
For FY25, NSDL reported a 12% rise in revenue to ₹1,535.19 crore and a 25% jump in profit after tax to ₹343.12 crore. The IPO was priced at a P/E of 46.63 and price-to-book value of 7.98, which some analysts consider elevated. Shivani Nyati, Head of Wealth at Swastika Investmart said that NSDL made "a good, solid debut" and is expanding its offerings with more value-added services supporting steady growth in both revenue and profit.