According to Bloomberg, which cited people familiar with the matter, the listing plans for NSDL, initially approved by Sebi in October 2024, have now reached an advanced stage.
Issue size scaled back
The IPO will now comprise 5.01 crore shares, trimmed from the earlier proposal of 5.73 crore shares as disclosed in the company’s draft red herring prospectus. This revision was outlined in an addendum filed in late May.
Entirely an OFS
The entire offering will be an offer for sale (OFS) by existing shareholders including IDBI Bank, the National Stock Exchange of India, and State Bank of India. NSDL will not receive any proceeds from the IPO, as per earlier regulatory filings.
Cooling interest in unlisted market
In the unlisted market, NSDL shares have slipped nearly 20% from their 52-week high of Rs 1,275 to around Rs 1,025, according to data from Unlistedzone. The correction comes in the wake of HDB Financial’s listing at a sharp discount to its grey market valuation, which has weighed on sentiment in the pre-IPO space.
Listing and intermediaries
The shares will be listed on both the NSE and BSE. ICICI Securities, Axis Capital, HSBC Holdings Plc, and IDBI Capital are serving as book-running lead managers, while MUFG Intime India (formerly Link Intime) has been appointed as the registrar.
Sebi-cleared market infrastructure institution
NSDL, incorporated in April 2012 as NSDL Depository Ltd, is a Sebi-registered market infrastructure institution (MII). It plays a critical role in the Indian capital market by providing electronic infrastructure for dematerialising securities and enabling electronic trade settlements.
Major subsidiary: NSDL Payments Bank
The company derives a significant portion of its revenue from its wholly owned subsidiary, NSDL Payments Bank Ltd (NPBL), which was incorporated in August 2016 and began operations in October 2018. NPBL is engaged in the payments banking business.
Among India’s core market entities
As one of the country’s two central securities depositories, NSDL’s IPO is a notable moment for the broader capital markets ecosystem, though whether it will live up to its unlisted hype remains to be seen in a cooling primary market.
Also read | Tata Capital, LG, NSDL among big-ticket IPOs ready to hit Dalal Street this year
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