NSDL IPO: Price Band Set at Rs 760-800, 22% Below Unlisted Market Value
National Securities Depository Limited (NSDL) announces IPO price band of Rs 760-800 per share, targeting a Rs 4,011.60 crore offering. The IPO, structured as an Offer for Sale of 5.01 crore shares by existing shareholders, will run from July 30 to August 1. At the upper price band, NSDL's valuation is approximately Rs 16,000 crore, with a P/E ratio of 46.60. The company reported strong Q3 results with net profit growth of 29.8% YoY. Current grey market premium suggests potential listing gains of around 18%.
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National Securities Depository Limited (NSDL) has announced the price band for its highly anticipated Initial Public Offering (IPO), setting the stage for a significant market event. The depository giant has priced its shares at Rs 760-800, a move that has caught the attention of investors and market analysts alike.
IPO Details
- Price Band: Rs 760-800 per share
- IPO Size: Rs 4,011.60 crore
- Subscription Period: July 30 to August 1
- Anchor Bidding: July 29
- Minimum Investment (Retail): Rs 14,400
Pricing Strategy
The announced price band represents a notable 22% discount to NSDL's current unlisted market trading price of approximately Rs 1,025. This pricing strategy has drawn comparisons to HDB Financial Services, which previously priced its IPO at a 40% discount to its unlisted market value but ultimately listed at a 12.8% premium.
Offer Structure
NSDL's IPO is structured entirely as an Offer for Sale (OFS) of 5.01 crore shares by existing shareholders, including:
- IDBI Bank
- National Stock Exchange (NSE)
- Union Bank of India
- State Bank of India (SBI)
- HDFC Bank
- Specified Undertaking of Unit Trust of India (SUUTI)
Valuation and Market Sentiment
At the upper price band of Rs 800, NSDL is targeting a valuation of approximately Rs 16,000 crore. The company's shares are currently showing a grey market premium of Rs 145-155, suggesting potential listing gains of around 18%.
Comparative Valuation
| Metric | NSDL | CDSL |
|---|---|---|
| P/E Ratio | 46.60 | 66.60 |
At the upper price band, NSDL's price-to-earnings (P/E) ratio stands at 46.60, which is lower than its peer Central Depository Services Limited (CDSL) at 66.60.
Recent Financial Performance
NSDL reported strong financial results for Q3:
- Net Profit: Rs 85.80 crore (29.8% YoY growth)
- Total Income: Rs 391.20 crore (16.2% YoY increase)
The IPO of NSDL marks a significant event in India's financial markets, offering investors an opportunity to participate in the growth of one of the country's leading depositories. The pricing strategy and strong financial performance have set the stage for what could be a closely watched public offering in the coming days.
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