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NSDL shares have surged nearly 78% since their August 6 debut, hitting fresh highs amid strong post-IPO momentum; What should investors do?
NSDL Share Price Today.
NSDL Share Price: Shares of National Securities Depository Limited (NSDL) tumbled on Monday morning by over 10.5% from the day’s high on profit-booking, after the stock had touched its fresh record high of Rs 1,425 in the early trade before reversing all intraday gains. The shares have risen 78% since their listing on August 6.
The stock was seen trading in red at Rs 1,272.1 apiece on the NSE around 11:30 am, which is 10.72% lower than the day’s high of Rs 1,425 recorded at nearly 9:30 am.
Since its debut on August 6, NSDL has still delivered an impressive 70% return to IPO investors, with its market capitalisation crossing Rs 28,000 crore.
In comparison, its peer Central Depository Services Ltd (CDSL) traded flat at Rs 1,569.
The Rs 4,011-crore IPO of NSDL, entirely an offer-for-sale (OFS) of 5.01 crore shares, was subscribed 41 times when bidding closed on August 1. The price band was fixed at Rs 760–Rs 800 per share. Shares were offloaded by the National Stock Exchange of India, State Bank of India, HDFC Bank, IDBI Bank, Union Bank of India, and the Administrator of SUUTI.
Founded in 1996 following the Depositories Act, NSDL pioneered dematerialisation of securities in India and today offers a wide range of products and services to the financial and securities markets.
Why is NSDL stock rising?
NSDL is well-poised to benefit from the country’s growing retail investor base, which has surged by 55% in the last two years, said Harshal Dasani, Business Head at INVasset PMS.
Moreover, the government’s push for digital financial services offers a strong tailwind for NSDL’s growth, positioning the company for long-term expansion, he added.
NSDL is India’s largest depository in India and manages over Rs 200 lakh crore worth of securities in demat form, holding a dominant 85% market share. With over 3 crore demat accounts, it plays a pivotal role in India’s rapidly expanding capital markets.
What Should Investors Do Now? Book Profits Or Hold
Analysts are divided on the next move. Many suggest short-term or listing-gain investors should book profits after the sharp rally, while long-term investors may continue to hold.
“Immediate support is near Rs 1,350, with resistance at Rs 1,450. A breakout above this could push the stock towards Rs 1,500. In the short term, expect a range of Rs 1,300–Rs 1,500,” said Jigar S Patel, Senior Manager – Technical Research Analyst at Anand Rathi.
Kranthi Bathini, Director – Equity Strategy at WealthMills Securities, echoed that NSDL remains in a “momentum zone” and advised long-term holders to stay invested, while shorter-term traders could consider profit-taking.
Ravi Singh of Religare Broking set a near-term upside target of Rs 1,450 with a stop-loss at Rs 1,150. Analysts from Bonanza and independent expert AR Ramachandran also recommended booking gains at current levels.
The IPO saw strong demand, with QIBs subscribing 104 times their quota, non-institutional investors 35 times, and retail investors 7.7 times.
The shares of the company were trading nearly 1% higher at Rs 1,315 apiece, as seen at 11.42 am.
Disclaimer: The views and investment tips by experts in this News18.com report are their own and not those of the website or its management. Users are advised to check with certified experts before taking any investment decisions.
Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a…Read More
Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a… Read More
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