India’s primary market has been buzzing lately, and one of the biggest names on the Street is now heading towards its stock market debut – NSDL. With allotments expected to be finalised today, investors are closely watching how this strongly subscribed IPO will perform on listing day.
But something has caught everyone’s attention now and that is the grey market premium (GMP) which is slowly cooling off. So, what could this mean for the listing? Let’s take a look at it –
NSDL IPO: GMP slips from peak – What is driving the sentiment?
NSDL’s grey market premium was soaring as high as Rs 156, pointing to a strong debut with nearly a 20% gain over the issue price. This was around mid-July when the IPO buzz was gaining heat. But as the IPO window opened and the bidding started, the mood seemed to temper a bit. On the initial day of the issue, GMP dropped to Rs 126, and then hovered around Rs 130 for the rest of the subscription period.
Now, even after the IPO has closed and is approaching the allotment date, the GMP has cooled further, currently hovering around Rs 120. This pegs the estimated listing price around Rs 920, which is about 15% above the upper price band of Rs 800.
Still a decent premium, but clearly softer than what the market was predicting earlier. However, it is important to note that GMP is not the official listing price and may fluctuate based on the market sentiment.
NSDL IPO: GMP is not the full picture
Grey market premium often gives a rough idea of listing expectations, but it is important to remember that GMP is unofficial and driven by market rumours and speculative trades.
It does not guarantee how a stock will actually perform on debut day. Many factors like broader market trends, sector performance, or global cues can shift sentiment quickly.
NSDL IPO: Subscription numbers
Even with the GMP losing some steam, the demand for NSDL’s shares was stronger. The IPO was subscribed 41 times overall, with Qualified Institutional Buyers (QIBs) leading the charge. They booked the issue 104 times over. Non-Institutional Investors portion was subscribed nearly 35 times subscription, while retail investors put in bids worth over 7.7 times their reserved portion.
NSDL IPO: All eyes on August 6 – Listing day clues
With the IPO now closed, the next big process waiting is the listing on August 6. Investors who received allotments can expect shares to be credited by August 6 or 7.
If you did not get any shares, your application money will be unblocked or refunded in 2-3 working days.
The big question for many now is – Will NSDL deliver a big debut, or will it be a more measured listing given the changing GMP trends? Either way, this is one of the most closely watched listings of the year.
NSDL IPO: Behind the offer – A pure OFS, no fresh fund raise
NSDL’s Rs 4,011 crore IPO is purely an Offer for Sale (OFS). That means all the money raised will go to the existing shareholders who are selling their stake. The company itself is not raising any fresh funds in this offer. The price band was fixed between Rs 760 to Rs 800 per share.
Furthermore, it is India’s oldest and largest depository, and holds assets worth over Rs 398 lakh crore. Also, it plays a key role in keeping the capital markets running smoothly.