Is it wise to buy SBI, HDFC Bank shares ahead of NSDL IPO opening date?

Stock market today: The depository firm National Securities Depository Ltd (NSDL) is expected to launch its must-awaited ₹3000 crore initial public offering (IPO) in March 2025. As reported by PTI, the 12-month deadline for the DRHP expires in September 2025. Still, the MII (market infrastructure institution) approval given by Sebi is prompting the depository to handle a bulk of India’s dematerialised accounts to expedite the share sales process. The news agency further reported that NSE, State Bank of India (SBI) and HDFC Bank plan to offload 5.72 crore equity shares in the NSDL IPO, which will be a complete offer for sale (OFS).

According to stock market experts, NSDL IPO is entirely OFS, which means the net proceeds of NSDL IPO will not go into the company’s balance sheet but into the coffers of institutions offloading their shareholding in NSDL. Hence, NSDL IPO benefits NSE, SBI, and HDFC Bank, which are offloading 5.72 crore NSDL shares. They said that the NSDL IPO is expected to boost the balance sheet of SBI and HDFC Bank, which is expected to bolster their respective quarterly results in the upcoming quarter. So, SBI and HDFC Bank shares are expected to come under the radar of Dalal Street bulls ahead of the NSDL IPO opening date.

NSDL IPO: SBI, HDFC Bank stocks to watch

On how SBI and HDFC Bank will benefit from NSDL IPO, Anshul Jain, Head of Research at Lakshmishree Investment and Securities, said, “NSDL IPO is completely OFS, which means net proceeds of the public issue will go into the promoters’ balance sheet instead of the company’s balance sheet. As SBI and HDFC Bank are selling their stake through the NSDL’s public issue, the net proceeds are expected to boost the balance sheet of their Indian banks. Hence, we can expect a better or improved quarterly number from SBI and HDFC Bank due to the NSDL IPO. So, bulls’ are expected to bet high on SBI and HDFC Bank shares ahead of the NSDL IPO opening.”

Explaining with an example, Mahesh M Ojha, AVP — Hensex Securities, said, “SBI and HDFC Bank is expected to repeat the kind of benefit Tata Motors share received ahead of the Tata Technologies IPO. Tata Motors was offloading its stake in the Tata Group company in the Tata Technologies IPO. Similarly, SBI and HDFC Bank are offloading their respective stakes in the company. Tata Technologies’ IPO was also 100 per cent OFS, and NSDL’s IPO was also 100 per cent OFS.”

SBI share price target

Advising investors to buy SBI shares ahead of the NSDL IPO opening, Mahesh M Ojha said, “The SBI share price is looking positive on the chart pattern, and it is available at attractive valuations after the recent stock market crash. One can buy SBI shares in the ₹715 to ₹722 range for the short-term targets of ₹750 and ₹775, respectively. However, one must maintain a strict stop loss below ₹698 while taking any fresh position.”

HDFC Bank share price target

Mahesh Ojha of Hensex Security said that investors can also buy HDFC Bank shares in the ₹1680 to ₹1692 per share range for the short-term target of ₹1735 and ₹1775. However, he suggested that fresh investors maintain a stop loss below ₹1658 for HDFC Bank stock investors.

Disclaimer: The views and recommendations provided in this analysis are those of individual analysts or broking companies, not Mint. We strongly advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and individual circumstances may vary.