Shares of National Securities Depository Limited (NSDL), India’s largest depository services provider, slipped nearly 2% on September 3 following the expiry of a key one-month lock-in period.
75 Lakh Shares Enter Market
With the lock-in ending, around 75 lakh NSDL shares-equivalent to 4% of the company’s equity-became available for trading. At current market prices, this block of shares is valued at approximately ₹1,000 crore.
Market experts note that such a sudden increase in free-float shares often triggers short-term selling pressure, which was visible in today’s trading session.
More Supply Pressure Likely
According to Nuvama Alternative & Quantitative Research, NSDL’s stock may face further pressure in the coming weeks. Another 80 lakh shares are set to be unlocked on November 3 after the expiry of a three-month lock-in period. This could potentially weigh on the stock if investor sentiment weakens.
NSDL’s Market Journey Since Listing
NSDL shares were listed on the stock exchanges on August 6, 2024. The listing attracted strong interest, with the stock climbing to an all-time high of ₹1,425 within the first few sessions.
- IPO Price: ₹800
- Current Price (Sept 3, 10:30 AM): ₹1,254.56
- Upside from IPO Price: Nearly 60%
Since listing, NSDL has seen gains in 12 out of 18 trading sessions, reflecting strong investor confidence despite today’s pullback.
Outlook
The fundamentals of NSDL are still good, but the stock could be volatile in the near future because promoter and pre-IPO investor shares are being unlocked. Analysts say that long-term investors may still be able to make money, but short-term traders should be ready for swings.
Disclaimer: This article is for informational purposes only. Stock market investments are subject to risks. Please consult a certified financial advisor before making any investment decisions.
