NSDL shares jump 17% in debut trade; here's what investors should do

Shares of National Securities Depository Ltd (NSDL) made a decent debut on Wednesday, listing at Rs 880 on BSE -- a 10 per cent premium over its issue price of Rs 800 per share. Post listing, the stock moved higher and jumped 17.24 per cent from the initial public offering (IPO) price to hit a day high of Rs 937.95.

NSDL's grey market premium (GMP) was in the range of Rs 120-140 over the issue price of Rs 800, indicating expected listing gains of around 15-17 per cent.

A few analysts have reacted positively to NSDL's market debut. One advises booking partial profits near the listing level of Rs 880 while holding the remaining shares with a stop-loss at Rs 850. Another suggests that short- to medium-term investors may consider booking some gains, whereas long-term investors can continue to hold, citing NSDL's strong fundamentals.

Shivani Nyati, Head of Wealth at Swastika Investmart, said, "NSDL had a strong market debut, listing around Rs 880. Investors may consider booking partial profits at these levels while holding the remaining shares with a suggested stop-loss near Rs 850."

Kranthi Bathini, Director of Equity Strategy at WealthMills Securities, said, "If investors have entered with a short- to medium-term view or aimed for listing gains, it makes sense to book some profits. Given the company's strong long-term prospects and its position in the depository services duopoly, it is expected to perform well. Long-term investors can continue to hold, but fresh buying should be considered only on dips."

Backed by strong fundamentals and a dominant position in the depository services space, the company has generated solid investor interest during the IPO. The IPO was met with strong overall demand, being oversubscribed 41 times. Qualified institutional buyers (QIBs) led the charge, subscribing 104 times their allotted quota, followed by non-institutional investors (35 times) and retail investors (7.7 times).

The initial share sale was open for bidding between July 30 and August 1. NSDL raised Rs 4,011.60 crore through a complete offer-for-sale (OFS) of 5,01,45,001 equity shares.