NSDL IPO GMP: Why Grey Market Premium Price Of Public Issue Dropped? The 3 big investor concerns revealed

The grey market premium (GMP) for the upcoming IPO of National Securities Depository Limited (NSDL) has dropped sharply in recent days, signaling a shift in investor sentiment.

Earlier, the premium was as high as Rs 80–Rs 85 per share, showing strong early interest. But it has now fallen to around Rs 48–Rs 52, according to market trackers. While GMP isn’t an official indicator of a stock’s listing performance, it often reflects how investors are feeling about an IPO.

So, what’s behind the decline in enthusiasm? Market experts say three main concerns are driving the dip:

1. High Valuation, modest growth

NSDL is a big player in India’s financial infrastructure, managing over 3 crore demat accounts and holding assets worth more than Rs 450 trillion. But despite its size, investors are concerned that the company’s revenue and profit growth has been slower in recent years. The IPO’s price, when compared with its rival CDSL, feels expensive to many market watchers.

Also Read: NSDL IPO: Latest GMP, Subscription Status, Key Details, and Dates Unveiled - All You Need to Know | Republic World

2. No money coming into the business

NSDL’s IPO is purely an Offer for Sale (OFS), which means the company won’t get any new funds from this issue. Only existing shareholders will be selling their stake. That has disappointed investors who hoped the company would raise fresh capital to invest in new technologies and stay competitive in the fast-changing digital finance space.

3. Tougher regulations and new competitors

India’s market regulator SEBI is pushing for more competition in the depository space — traditionally dominated by NSDL and CDSL. At the same time, new tech-based startups are entering the market, offering cheaper and more flexible solutions. If NSDL doesn’t adapt quickly, it could lose ground. There are also concerns that regulatory changes might reduce the fees NSDL charges, squeezing its profit margins.