NSDL IPO: NSDL gets in-principle nod to list by mid-August

Mumbai: National Securities Depository (NSDL) has received the Securities and Exchange Board of India‘s in-principle approval to list on the stock exchanges by August 14. The depository was scheduled to open its IPO before July 31, as regulations require companies to complete the process within one year of receiving IPO approval.

The issue has been delayed due to lengthy negotiations over the company’s IPO valuation, prompting it to seek Sebi’s approval to delay the launch of the IPO, said people with knowledge of the matter.

NSDL’s IPO is now likely to open by the end of this month or early next month, with listing targeted in the first week of August, they said. The company is now aiming for a valuation of ₹16,000 crore in the IPO, they added.

NSDL first filed its draft red herring prospectus (DRHP) with Sebi in July 2023 and filed an addendum this May, reducing the issue size from 57.2 million shares to 50.1 million shares. In the unlisted market, the shares last traded at ₹1,025, down from ₹1,250 a month ago, according to unlistedzone.com. As per IPO Watch, the shares currently command a grey market premium of ₹154 per share. At this price, the company’s price-to-earnings ratio is nearly 60 times, while its larger listed peer CDSL trades at 69 times.