NSDL Multibagger: Can the Rally Continue?

New Delhi, 11 August, 2025:Shares of National Securities Depository Limited (NSDL) have delivered a remarkable performance for investors, with the stock being classified as a multibagger just days after its listing. The stock, which was issued at a price of Rs 800 per share, has seen a sharp increase in value, delivering substantial gains to both institutional and retail investors. Since its debut, the shares have consistently moved upwards, with a significant premium being registered over the initial public offering (IPO) price.

The IPO, which was an offer-for-sale (OFS) with no fresh capital being raised by the company, was met with an overwhelming response. It was subscribed over 41 times, with particularly strong interest being shown by Qualified Institutional Buyers (QIBs), whose portion was subscribed more than 103 times. This high demand from institutional players and the subsequent buying interest in the secondary market are considered key drivers of the stock’s stellar post-listing performance.

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NSDL’s strong business fundamentals are also being cited as a reason for investor confidence. The company holds a dominant position as a market infrastructure institution in India, and a significant market share in the dematerialized securities segment. It is a key provider of depository services for a wide range of clients, including mutual funds, insurance companies, banks, and foreign portfolio investors. Its robust and recurring revenue streams, derived from custody and transaction fees, provide a high degree of revenue visibility and business stability, a factor that is highly valued by market analysts.

In the fiscal year 2025, a solid financial performance was posted by NSDL, with a 12% rise in revenue and a 25% jump in profit after tax. This steady growth in both its top and bottom lines is being viewed positively by market experts. The company’s expansion into other digital financial services through its subsidiaries, such as NSDL Payments Bank and NSDL Database Management, is also seen as a strategic move that could further diversify its income streams and support long-term growth.

The central question now being considered by investors is whether this upward momentum can be sustained. Analysts have issued a mixed set of opinions, with some advising a “hold” for long-term investors who received allotments in the IPO, while others suggest that those who missed the IPO should wait for a potential correction before entering the stock. The valuations, which were considered elevated at the IPO price, are now even higher following the post-listing rally, which could make the stock susceptible to profit-booking in the short term. The company’s upcoming board meeting to declare its quarterly results is being keenly watched as it could influence market sentiment. While the stock’s remarkable debut has already secured its place in India’s IPO history, its future trajectory will be closely monitored, with its ability to maintain a strong growth curve and command its premium valuation being of primary importance.