October 8, 2024
New Delhi, India
NSDL IPO
The National Securities Depository Ltd (NSDL), India’s largest depository, has received final approval from the Securities and Exchange Board of India (SEBI) to proceed with its Initial Public Offering (IPO). The IPO will involve an offer for sale (OFS) of 57,260,001 shares, allowing major shareholders, including IDBI Bank, NSE, SBI, HDFC Bank, and Union Bank of India, to reduce their stakes.
Key Details of NSDL IPO
- Offer for Sale: 57.26 million shares
- Major Sellers:
- IDBI Bank: Up to 22.2 million shares
- NSE: 18 million shares
- Union Bank of India: 5.62 million shares
- SBI: 4 million shares
- HDFC Bank: 4 million shares
- SUUTI (Administrator of Specified Undertaking of Unit Trust of India): 3.4 million shares
IPO Background and SEBI Approval
The IPO, initially filed in July 2023, was temporarily put on hold by SEBI in August 2023. The suspension was lifted after further reviews, clearing the way for the public offering. SEBI has the power to pause any IPO during an ongoing investigation or if companies fail to provide requested information promptly.
NSDL’s Role and Market Position
NSDL plays a crucial role in India’s financial markets as a market infrastructure institution (MII) registered with SEBI. The depository offers a robust framework for market participants to engage in the country’s financial and securities markets. It also continues to develop new products and services to meet the growing demands of the financial sector.
- Demat Accounts: As of March 31, 2023, NSDL managed over 31.46 million active demat accounts across 283 depository participants.
- Geographical Reach: These accounts span more than 99% of India’s postal codes and 186 countries globally.
- Issuers: NSDL had 40,987 registered issuers by March 2023, as stated in its Draft Red Herring Prospectus (DRHP).
Lead Managers for NSDL IPO
The book-running lead managers for the NSDL IPO include:
- ICICI Securities
- Axis Capital
- HSBC Securities and Capital Markets (India)
- IDBI Capital Markets and Securities Ltd
- Motilal Oswal Investment Advisors Ltd
- SBI Capital Markets Ltd
This IPO is expected to generate significant interest due to NSDL’s integral role in India’s securities market infrastructure, and it will provide investors with an opportunity to become part of the country’s financial backbone.
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