The Securities and Exchange Board of India (SEBI) has officially given the go-ahead for the initial public offering (IPO) of National Securities Depository Limited (NSDL). This significant development was revealed in the Draft Red Herring Prospectus (DRHP), which indicates that the IPO will involve the sale of approximately 57.3 million shares from six key stakeholders, including IDBI Bank, the National Stock Exchange (NSE), Union Bank of India, State Bank of India, SUUTI, and HDFC Bank.
Key Highlights of the NSDL IPO
According to the DRHP submitted on July 7, 2023, this IPO will consist entirely of an offer for sale (OFS), with the NSE playing a major role as a seller. In August 2023, SEBI had temporarily suspended the DRHP, a common procedure when there are ongoing investigations or delays in providing necessary documentation.
Shareholder Contributions
The offer for sale in this IPO will see the following distributions among shareholders:
- IDBI Bank: 2.22 million shares
- NSE: 18 million shares
- Union Bank of India: 5.62 million shares
- State Bank of India: 4 million shares
- SUUTI: 3.4 million shares
- HDFC Bank: Participating in the sale
This divestment by major financial institutions underscores the significance of NSDL in India’s capital markets, where it holds a dominant position in managing and settling securities in dematerialized form.
Future Prospects for NSDL
Once listed, NSDL will join the ranks of publicly traded depository services companies on Indian exchanges, following the successful entry of Central Depository Services Limited (CDSL) back in 2017. As of the latest market updates, CDSL’s stock experienced a slight decline of over 1.11%, trading around ₹1,352.85 per share.
With this IPO, NSDL aims to enhance its operational capabilities and increase its visibility in the market, positioning itself for future growth and development within the Indian financial landscape.
