NSDL share price: Shares of National Securities Depository Limited (NSDL) have been in an uptrend since their stock market debut last week on August 6. NSDL share price jumped another 9.6% in intraday trade today, August 11, to a fresh high, extending its gains to the fourth straight session.
During this period, it has offered investors a whopping 78% return on their bet on its initial public offering (IPO).
NSDL shares had a positive debut on the exchange last week. On BSE, NSDL share price opened at ₹880 per share, 10% higher than the issue price of ₹800. The depository stock ended the listing day at ₹936 on BSE, a 17% premium to the IPO price of ₹800.
NSDL IPO had also received a strong response from investors, receiving 41 times bids. The retail investor segment was subscribed 7.73 times. The non-institutional investor (NII) quota saw a subscription rate of 34.98 times. Meanwhile, the portion reserved for qualified institutional buyers (QIBs) was booked at 103.97 times. The employee segment witnessed a subscription rate of 15.42 times.
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 ₹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.
Is NSDL a good stock to buy now?
According to Dasani, while NSDL’s long-term growth prospects are compelling, investors should be cautious of short-term volatility, particularly given its post-IPO price movement.
“Long-term investors can consider holding the stock, but for short-term investors, waiting for potential corrections could provide an opportunity to enter at a more attractive valuation,” he opined.