NSDL stock rallies 20% post-listing, climbs 40% over IPO price in 2 days

NSDL Share Price Today: In a weak market session, shares of National Securities Depository Limited (NSDL) stood out on Thursday, jumping nearly 20 per cent to hit a new high of Rs 1,118 on the BSE. The rally is seen just a day after the company made a strong debut on BSE, listing with a 17 per cent premium over its IPO price.

With Thursday’s gains, the stock is now up 40 per cent from its issue price of Rs 800.

NSDL IPO saw an overwhelming demand

NSDL’s Rs 4,011 crore IPO saw an enthusiastic response from all categories of investors. The issue was subscribed 41 times, with institutional investors alone bidding 104 times their allotted quota. High-net-worth individuals (HNIs) subscribed 35 times, while retail investors put in nearly 8 times the bids.

The offer was purely an offer-for-sale, with existing shareholders — including IDBI Bank, National Stock Exchange (NSE), and four other institutions — offloading part of their stakes. The IPO was triggered by SEBI regulations, which limit any single entity from owning more than 15 per cent in a market infrastructure institution.

Only the second listed depository in India

With its listing, NSDL has become the second depository to go public in India, following CDSL, which listed back in 2017.

Founded in 1996, NSDL introduced the concept of dematerialised securities to India. Since then, it has become a key pillar of the capital market ecosystem, handling the electronic storage and transfer of a wide range of financial securities from equity shares and bonds to mutual funds and government securities.

Unlike many financial services firms, NSDL’s business model is built on steady and recurring revenues. Most of its income comes from annual maintenance and custody fees, which are less tied to market volatility and offer stability across cycles.

NSDL: Dominant player with strong fundamentals

Over the years, NSDL has maintained a lead over CDSL in terms of:

Number of companies whose securities are held in demat form

Value and volume of assets held under custody

Overall market share in demat activity

The depository space itself has grown rapidly. Between FY17 and FY25, the number of companies with securities in demat form under NSDL grew from 17,835 to 79,773, a 20.6 per cent CAGR. CDSL saw similar momentum, growing from 9,887 to 35,922 over the same period at a 17.5 per cent CAGR.