NSDL IPO: What’s the buzz in the unlisted share price
The NSDL IPO size has been reduced to Rs 3,000-3,400 crore issue as per the latest addendum filed to SEBI by the Depository. The big question is what could be the potential issue price. NSDL’s unlisted share prices are trading around Rs 1,025 per share. This is down significantly from its 52-week highs in the unlisted share space. Prices have fallen nearly 18-20% after the issue price for the HDB Financial Services IPO was announced.
The HDB Financial Services IPO, which was also trading around Rs 1,250 per share in the unlisted space, was priced at Rs 740 a share. The shares finally listed at a 13% premium to the issue price at Rs 835 per share.
This is one of the big reasons why the NSDL share price in the unlisted space has fallen from Rs 1,200+ levels to Rs 1,025 per share. There is apprehension that investors may face a notional loss when the issue price is finally announced.
The whispers and the market buzz indicate the likelihood of an issue price being fixed in the vicinity of the Rs 800 per share level.
This is one of the big reasons why the NSDL share price in the unlisted space has fallen from Rs 1,200+ levels to Rs 1,025 per share. There is apprehension that investors may face a notional loss when the issue price is finally announced.
The whispers and the market buzz indicate the likelihood of an issue price being fixed in the vicinity of the Rs 800 per share level.
NSDL IPO: Issue purely an offer for sale
Another important aspect that investors should keep in mind is that the NSDL issue is a pure offer for sale. No fresh capital is being raised through this issue. The proceeds of the IPO will not benefit NSDL; rather, they will go to the key stakeholders who are diluting shares. This share sale is primarily done to comply with SEBI’s ownership cap at 15% for all MIIs or Market Infrastructure Institutions.
The companies that would be diluting stake via this OFS include NSE, IDBI Bank, HDFC Bank, SBI, Union Bank of India, and SUUTI.
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