NSDL Shares Rise 20% A Day After IPO Listing: Why Is It Surging Despite Fall In Sensex?

Last Updated:August 07, 2025, 15:29 IST

The consistent demand for NSDL shares in the secondary market reflects continued investor interest in the company’s robust fundamentals and robust depository business.

NSDL Share Price Today.

Shares of National Securities Depository Limited (NSDL) extended their post-listing rally, surging 20% on Thursday, a day after making a decent debut on the bourses. The stock closed at Rs 1,123.20 apiece on the NSE, which is the upper circuit of 20 per cent over the previous close of Rs 936. The IPO was issued at Rs 800. This sharp upmove came even as the broader market remained subdued, with the Sensex trading over 350 points lower.

According to analysts, the consistent demand for NSDL shares in the secondary market reflects continued investor interest in the company’s robust fundamentals and robust depository business. On Wednesday, NSDL had listed at a premium of 10% over its issue price, despite overall weak market sentiment.

“The NSDL IPO was subscribed 41 times, with heavy demand from institutional investors, while retail investors also showed interest. This was a pure offer for sale therefore, the company did not raise fresh money, but the strong response highlights NSDL’s position in the depository space. With the support of robust industry trust and technological infrastructure, NSDL maintains its leadership position in value-based transactions and institutional account holdings,” according to a note from Master Capital Services Ltd.

It added, “Going forward, the company plans to use its strength to grow further, improve its IT systems to become more efficient and offer more services. Investors who get IPO should consider holding the stock for the long term as the company has strong fundamentals and a leadership position in the depository segment. On the other hand, those who didn’t get shares in the IPO can buy when the price declines.”

Prashanth Tapse, senior VP (research) at Mehta Equities Ltd, also maintained a positive view on NSDL following its listing. He said, “Despite the muted sentiment in broader markets, NSDL listed broadly in line with our expectations, underpinned by its strong long-term fundamentals. We maintain our positive stance, as NSDL remains the dominant player in the institutional depository space, with a leading share in custodial and depository services for mutual funds, insurance firms, banks, and foreign portfolio investors (FPIs).”

He added that the company has an established market position, revenue visibility, and the current valuation dynamics.

The analysts say NSDL’s market strength, dominance in institutional account holdings, and scalable tech-driven infrastructure are key triggers for the sustained stock demand. With the growing size of India’s capital markets and higher participation from retail and institutional investors alike, the depository business is likely to grow steadily.

Even though Thursday saw a widespread selloff in frontline stocks following the US’ additional tariffs on India, NSDL’s uptrend signals investor conviction in its long-term prospects.

Mohammad Haris

Haris is Deputy News Editor (Business) at news18.com. He writes on various issues related to personal finance, markets, economy and companies. Having over a decade of experience in financial journalism, Haris h…Read More

Haris is Deputy News Editor (Business) at news18.com. He writes on various issues related to personal finance, markets, economy and companies. Having over a decade of experience in financial journalism, Haris h… Read More

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