NSDL’s Stock Rally Surges 78% After Listing: Key Reasons and What Lies Ahead

National Securities Depository Ltd. (NSDL) has made an entry into India’s stock market that’s hard to ignore. Listed on August 6 at ₹880 per share on the BSE, a 10% premium over its IPO price of ₹800, the stock has delivered a strong debut.
In just a few trading sessions since listing, the stock has not only delivered strong initial gains but also maintained a consistent upward trajectory.

From its IPO price, it has given a stunning gain of around 78%, and about 62% above its listing price in less than a week, such numbers that are rare in the capital market space. For both retail and institutional investors, NSDL’s rally has quickly become a topic of discussion.

Let’s dive into the stock’s performance, what it signals, and the road ahead.

From Listing to Rally: A Snapshot of NSDL’s Price Journey

From day one, NSDL’s performance has outpaced expectations. IPO issue price was already a strong start, but what followed surprised both the market and investors.

Source: Google Finance

Within three trading sessions, NSDL’s market value crossed ₹28,000 crore, with the stock rising every day since its debut. From the IPO price of ₹800, it has gained 78% in under a week, a rare feat in the capital market space. This steady rally highlights strong investor confidence, positive sentiment, and optimism about the company’s growth prospects.

Why Is NSDL Share Rising?

The NSDL IPO was sized at approximately ₹4,012 crore, was oversubscribed 41.02 times by the close of bidding, signalling strong investor demand across all categories.

Several factors have driven this momentum:

1. Market Leadership: NSDL, India’s largest depository, plays a critical role in the country’s digital securities ecosystem, acting as the secure vault for holding and managing shares in electronic form.
   As of March 31, 2025, it had Assets Under Custody of ₹511 lakh crore and managed about 87-89% of the total value of dematerialized securities in India, highlighting its dominant position in the capital market.
2. Robust Financial: NSDL has delivered steady revenue growth and healthy profit margins, reinforcing investor trust. Around 85% of its revenues come from stable, recurring sources such as custody, issuer, and transaction fees, providing strong earnings visibility and predictability. 
   In FY25, revenue rose 12.41% year-on-year, from ₹1,268 crore to ₹1,420 crore, underscoring that its performance is backed by solid business fundamentals, not just market enthusiasm.  
3. Institutional Support: NSDL’s IPO saw strong participation from Qualified Institutional Buyers (QIBs) such as large mutual funds, insurance firms, and foreign investors. Notable anchor investors were LIC, Capital Group, and Fidelity; they joined before the public offering, signaling high institutional confidence. Anchor investors are large, reputable buyers who invest before an IPO is opened to the public, often seen as a vote of confidence in the company. 
   This strong QIB interest and anchor backing gave a credible boost to the market, lifting retail investor sentiment.

NSDL vs CDSL: Understanding the Key Competitors

• NSDL's market cap as of August 2025 stands around ₹28,000 crore after a strong post-IPO rally, while CDSL's market cap hovers higher around ₹32,700 crore despite a smaller asset base.
• NSDL is the institutional market leader with larger assets under custody of ₹511 lakh crore as of June 30, 2025. and more stable recurring revenues, and serves mostly institutional clients, foreign portfolio investors, and large investors.
• CDSL, with its stronghold in the retail segment and a significantly higher number of demat accounts, manages a smaller share of total assets under custody, approximately ₹77.7 lakh crore as of July 31, 2025, around 13% compared to NSDL. However, its rapid retail-driven expansion offers faster growth potential.
• NSDL’s P/E jumped from ~46.63x at IPO launch (early Aug 2025) to ~79x, driven by a post-listing rally and investor optimism, while CDSL stayed stable at ~66–68x. The valuation gap has sharply narrowed, suggesting the market is pricing NSDL closer to CDSL on growth and profitability.

This clear outperformance highlights the market’s current preference for NSDL’s scale, business model, and growth prospects.

The Bigger Picture

NSDL’s dominant position as the country’s largest depository and strong revenue visibility make it a solid candidate for long-term returns. However, with a current P/E of ~79, which is well above peer, the valuations look stretched after the post-IPO rally. A correction could present a better entry point, while the long-term growth story remains compelling for patient investors.

NSDL’s sharp rise after listing reflects more than just investor excitement; it signals the market’s trust in its pivotal role in India’s financial system. With more Indians opening demat accounts and entering equity markets, NSDL is well-positioned to ride this growth wave.

Strong fundamentals, capable leadership, institutional interest, and its key role in digital securities have driven the sharp stock price momentum, making the long-term growth story attractive despite high short-term valuations

The IPO’s performance has far exceeded market expectations, placing NSDL firmly in the spotlight and setting a high benchmark for upcoming public issues

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