New Delhi:National Securities Depository Ltd (NSDL) is set to launch its Initial Public Offering (IPO) on July 30, with the issue size pegged at around Rs 4,000 crore.The depository's maiden public issue will conclude on August 1.
The one-day bidding for anchor investors is scheduled to open on July 29, according to the Red Herring Prospectus (RHP).The IPO only consists of Offer For Sale (OFS) component of 5.01 crore shares and those selling shares under this are -- the National Stock Exchange of India (NSE), State Bank of India (SBI), HDFC Bank, IDBI Bank, Union Bank of India and Administrator of Specified Undertaking of the Unit Trust of India (SUUTI).
Since the public issue is entirely an OFS, NSDL will not receive any proceeds from the IPO.Market sources have pegged the IPO size to around Rs 4,000 crore.This upcoming listing will make NSDL the country's second publicly traded depository after Central Depository Services (CDSL), which was listed on the NSE in 2017.
The listing of NSDL is crucial in order to comply with Sebi's ownership norms. These regulations require that no entity can hold more than 15 per cent of the shareholding in a depository company.NSDL's principal shareholders, IDBI Bank and the NSE, are required to reduce their stake in the company to comply with Sebi's rule. Currently, IDBI holds 26.10 per cent and NSE owns 24 per cent stake in NSDL, which exceeds the permissible limit.
It is a Sebi-registered market infrastructure institution offering a wide range of products and services to the financial and securities markets in India. Following the introduction of the Depositories Act in 1996, NSDL pioneered the dematerialisation of securities in India in November 1996.
For the full financial year 2024-25, the depository's net profit surged by 24.57 per cent to Rs 343 crore and total income rose to Rs 1,535 crore, a 12.41 per cent increase over FY 2023-24.ICICI Securities, Axis Capital, HSBC Securities and Capital Markets (India), IDBI Capital Markets & Securities, Motilal Oswal Investment Advisors and SBI Capital Markets are the book-running lead managers to the issue.
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