SEBI has approved the IPO for NSDL. According to the Draft Red Herring Prospectus, the offering will comprise 57.3 million shares from 6 shareholders.
National Securities Depository Ltd (NSDL) has secured approval from the Securities and Exchange Board of India (SEBI) for its upcoming initial public offering (IPO). As a key entity in India’s capital markets, NSDL manages the majority of securities held and settled in dematerialized form.
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Details of the NSDL IPO
According to the Draft Red Herring Prospectus (DRHP) submitted on July 7, 2023, the IPO will be a pure offer for sale (OFS), with the National Stock Exchange (NSE) being one of the key sellers.
In August 2023, SEBI had temporarily put the DRHP on hold, a standard move when there is an ongoing investigation or a delay in providing requested information.
However, SEBI had placed the DRHP on hold in August 2023, which can occur if there is an ongoing investigation or if the company fails to provide requested information.
Shareholder Participation Of NSDL IPO
The offer for sale (OFS) in NSDL’s IPO will involve the divestment of 5.73 crore shares by six key shareholders — IDBI Bank, NSE, SBI, HDFC Bank, Union Bank of India, and SUUTI. IDBI Bank plans to sell up to 2.22 million shares, while the NSE will offload 1.8 crore shares from its stake in the depository.
Union Bank of India will sell 5.62 million shares, with State Bank of India and the Administrator of the Specified Undertaking of the Unit Trust of India (SUUTI) selling 4 million and 3.4 million shares, respectively. HDFC Bank is also among the participating shareholders in the IPO.
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Future Outlook for NSDL
Once listed, NSDL will become the second depository services company to be publicly traded on domestic exchanges, following the successful market debut of its peer, Central Depository Services Limited (CDSL), in 2017. Meanwhile, at 11:41 PM, CDSL’s stock price fell over 1.11%, trading around Rs 1,352.85 per share.
