National Securities Depository Limited (NSDL), a Sebi-registered market infrastructure institution, has filed draft papers with markets regulator Securities and Exchange Board of India for its initial public offering.
The initial public offering (IPO) is a complete offer-for-sale (OFS) of more than 57,22,60,001 equity shares by existing shareholders, according to the draft red herring prospectus (DRHP).
Under the OFS, IDBI Bank plans to offload 2.22 crore shares, National Stock Exchange (NSE) 1.80 crore shares, Union Bank of India 56.25 lakh shares, State Bank of India and HDFC Bank will offload 40 lakh shares each.
Also, Administrator of the Specified Undertaking of the Unit Trust of India (SUUTI) will sell 34.15 lakh shares of the Mumbai-based depository.
Shares of the company are proposed to be listed on the BSE, as per the draft papers.
A certain portion of the issue will be reserved for eligible employees as well and the company may offer a discount to them on the IPO price.
As of financial year 2023, NSDL's revenue stood at Rs 1,099.81 crore and its net profit was Rs 234.81 crore, which was higher than that in the previous fiscal.
If the listing goes ahead as planned, NSDL would become the second depository after peer Central Depository Services Limited in 2017 to be listed on the domestic bourses. The company aims to strengthen its position in the securities market and financial sector.
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.
NSDL 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.
According to a CRISIL report, the company is the largest depository in India in terms of number of active instruments, number of issuers, value of assets held under custody and market share in demat value of settlement value as of March 2023.
As of March 31, 2023, NSDL is the largest depository in India in terms of number of issuers, active instruments, market share in demat value of settlement volume and value of assets held under custody.
Apart from these services NSDL also launched other services that include PAN card services, uploading of central excise challan data in 2005 and an online tax accounting system in 2004. NSDL also stated a facility to deliver shares using mobile phones. The company in 2011 was appointed as the registrar of the Unique Identification System that led to the Aadhar card.
The company in 2015 diversified into banking services and was also awarded a licence by the RBI to open a payment bank with 10 other players.