NSDL IPO Delivering Windfall Gains to Early Institutional Investors

NSDL's IPO has generated massive returns for institutional investors, with SBI, IDBI Bank, and SUUTI seeing a 650-bagger return. SBI's Rs 1.2 crore investment is now worth Rs 7,802 crore, while IDBI Bank's Rs 5.996 crore investment is now valued at Rs 3,898.80 crore. HDFC Bank's Rs 150.54 crore investment has swelled to Rs 1,657.54 crore, and Union Bank of India's Rs 2.665 crore investment is now worth Rs 666.90 crore.

National Securities Depository Ltd (NSDL) has seen its Initial Public Offering (IPO) generate extraordinary returns for early institutional investors. The IPO, which raised Rs 4,011 crore, saw a 41 times oversubscription, reflecting strong demand. Key investors, including State Bank of India (SBI), IDBI Bank, and Union Bank of India, have witnessed substantial gains.

SBI's Investment: SBI's initial investment of Rs 1.2 crore has grown to Rs 7,802 crore, yielding a return of 6500%. The bank bought 40,00,000 shares at Rs 2 each and is now selling them at Rs 800, resulting in a massive return of 39,900% [4].

IDBI Bank's Investment: IDBI Bank's initial investment of Rs 5.996 crore has ballooned to Rs 3,898.80 crore, resulting in a return of 6500%. The bank invested in 2.22 crore shares at Rs 2 each and is now selling them at Rs 800 [4].

HDFC Bank's Investment: HDFC Bank's initial investment of Rs 150.54 crore has increased to Rs 1,657.54 crore, representing a return of 1,099.4%. The bank bought 1.5 crore shares at Rs 2 each and is now selling them at Rs 800 [4].

Union Bank of India's Investment: Union Bank of India's initial investment of Rs 2.665 crore has grown to Rs 666.90 crore, yielding a return of 250%. The bank bought 1.33 crore shares at Rs 2 each and is now selling them at Rs 800 [4].

Market Reaction: Despite these significant gains, the overall market remained in negative territory. The BSE Sensex declined by 102.09 points or 0.13% to 80,608.16 on the day of NSDL's listing [3].

Conclusion: NSDL's IPO has delivered substantial returns for early institutional investors, with SBI, IDBI Bank, and Union Bank of India seeing their investments grow significantly. These returns highlight the strong demand and potential for growth in the depository services sector. Investors should monitor NSDL's performance and consider the strategic role it plays in India's capital market ecosystem.

References:
[1] https://m.economictimes.com/markets/stocks/news/nsdl-shares-rocket-62-from-ipo-price-time-to-cash-out-or-double-down/articleshow/123181227.cms
[2] https://www.business-standard.com/markets/news/nsdl-ipo-oversubscribed-by-41x-check-allotment-status-gmp-listing-date-125080400098_1.html
[3] https://timesofindia.indiatimes.com/business/india-business/nsdl-ipo-listing-today-company-makes-strong-debut-shares-list-15-higher-than-issue-price-of-rs-800/articleshow/123134655.cms
[4] https://www.angelone.in/news/ipos/nsdl-ipo-generates-up-to-39-900-return-for-nse-sbi-and-hdfc-bank