NSDL shares slip below IPO price with negative returns every month since listing

Since its listing in August, shares of NSDL have delivered negative monthly returns every single month. The 12.7% drop in March is the worst in the seven full months that the stock has traded as a public company.

By Hormaz Fatakia

Shares of National Securities Depository Ltd. (NSDL) declined over 4% on Monday, March 30, to slip below its IPO price of ₹800 apiece.

Monday's drop is also the second day of losses for the stock, that has declined in five out of the last seven trading sessions.

Shares of NSDL had listed in August last year, at a 10% premium to its issue price. The stock went on to make a post-listing high of ₹1,425, which is a 78% jump from the IPO rate. The stock has declined 44% from those levels.

Since its listing in August, shares of NSDL have delivered negative monthly returns every single month. The 12.7% drop in March is the worst in the seven full months that the stock has traded as a public company.

At the end of its three-day subscription period, the NSDL IPO was subscribed 41 times the total number of shares on offer. The portion reserved for institutional investors was subscribed 104 times, while the retail portion was subscribed 8 times.

NSDL reported a weak third quarter, with its revenue declining 10% on a sequential basis, primarily dragged lower by a 17% drop in the core depository business. The depository and database management business both saw weakness with revenue decline and margin compression as well.

On the charts, NSDL trades below all of its key moving averages, and the stock is also in "oversold" territory, with its Relative Strength Index (RSI) at 27. An RSI reading below 30 means the stock is in "oversold" territory.

Five analysts have coverage on NSDL, of which two each have a "hold" and "sell" rating, while only one has a "add" rating. The consensus estimates of price targets implies an upside potential of 26% from current levels.

Shares of NSDL are trading 4.3% lower at ₹797.1.