NSDL IPO: The much-anticipated initial public offering (IPO) of National Securities Depository (NSDL) is expected to roll out soon, with the company planning to begin accepting investor bids as early as next week. According to a Bloomberg report, NSDL could raise up to $500 million from the offering.
With this listing, NSDL will become India’s second publicly traded depository, joining Central Depository Services (CDSL), which went public on the NSE in 2017.
Trading of NSDL’s unlisted shares halts
Trading in NSDL’s unlisted shares has been frozen since Friday, July 18, in line with regulatory norms. This means no off-market transactions in the unlisted category will be permitted until six months after the company’s shares are listed on the bourses. According to Unlisted Arena, the company’s unlisted shares were last seen trading at around ₹989.90 per share.
Investor interest in the unlisted market, Manan Doshi, Co-founder of Unlisted Arena, said, often rises sharply when an IPO nears, as greater clarity around the listing prompts a rush to buy shares before they hit the exchanges. “NSDL was no exception—its unlisted shares saw strong demand in June, trading between ₹1,180 and ₹1,200 as anticipation around the IPO grew,” said Doshi.
“However, the price has since declined slightly due to changing expectations around the IPO pricing, although investor demand for the company’s shares has remained strong,” Doshi added.
NSDL IPO details
According to the Draft Red Herring Prospectus (DRHP) filed by the company, the NSDL IPO will be an offer for sale (OFS) of 57,260,001 equity shares with a face value of ₹2 each. Among the key shareholders looking to offload their stake are the National Stock Exchange of India, which plans to sell 18,000,001 shares; IDBI Bank, which aims to offload 22,220,000 shares; and Union Bank of India, which intends to sell 5,625,000 shares.
NSDL shares are proposed to be listed on the BSE.
As per the DRHP, the price band and final offer price will be determined in consultation with the book running lead managers (BRLMs). These will be based on market demand for the equity shares through the book-building process and on qualitative and quantitative factors.
MUFG Intime India (formerly Link Intime India) has been appointed as the registrar to the issue. The book running lead managers include ICICI Securities, Axis Capital, HSBC Securities and Capital Markets (India), IDBI Capital Markets & Securities, Motilal Oswal Investment, and SBI Capital Markets.
NSDL will not receive any proceeds from the offer for sale. All proceeds, net of any offer-related expenses borne by the selling shareholders, will go to the respective shareholders in proportion to the shares they sell in the offering.
About National Securities Depository (NSDL)
National Securities Depository is one of India’s leading depositories, registered with the Securities and Exchange Board of India (SEBI). It provides depository services to a wide range of market participants, including investors, issuers, depository participants, financial institutions, stockbrokers, custodians, clearing corporations, and other intermediaries.
NSDL offers a secure and efficient depository framework that enables these participants to operate seamlessly in India’s financial and securities markets, according to DRHP. As part of its core business, NSDL operates a centralised digital book-keeping system that allows investors to hold and transfer securities in electronic form. This system ensures cost-effective and efficient settlement solutions across the Indian capital markets.
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