Unlisted shares of National Securities Depository (NSDL) are soaring higher in the pre-IPO market amid the rising buzzing of its upcoming IPO, which is said to be launched in the second quarter of the ongoing financial year. The stock prices have seen a substantial 50 per cent upside in the last two months.

According to the dealers from the unlisted market, shares of NDSL have jumped to Rs 1,200-1,225 mark amid the IPO buzz. The stock was trading around Rs 800-850 mark in early April, before the stock was freezed for free-transfer, like National Stock Exchange of India (NSE) shares. They see NDLs IPO price band around Rs 750-850.

Sandip Ginodia, CEO of Kolkata-based Altius Investech said that the new ISIN has led to free transfer and trade of NSDL shares, triggering a rise in its demand. Also, the news around its initial public offering (IPO) approval has added to the rising retail frenzy in the company, he notes.

“NSDL and CDSL make a duopoly in the market depository landscape. NSDL belongs to an assured business and assured growth sector, which adds to the optimism for it. As the financial asset market expands in India, NSDL is bound to grow. Besides this, there are no issues with corporate management or parentage.”

Echoing the similar tone, Hitesh Dharawat of Mumbai-based Dharawat Securities said that NDSL has a strong hold on institutional investors, while CDSL has an advantage in the retail segment. “The stock is slightly overvalued at current levels but the recent rise in CDSL prices and market infrastructure theme is attracting investors with a long term horizon, say 3-5 years,” he said.

The much-awaited IPO of the NSDL is expected later this year. It is one of the marquee public issues the street is watching out for. It had recently filed an addendum to the DRHP with the market regulator Sebi in its quest to launch the IPO, while it trimmed the IPO size to 50.15 million shares from 57.26 million as announced earlier.