The Securities and Exchange Board of India (SEBI) has granted approval for the initial public offering (IPO) of National Securities Depository Limited (NSDL).
According to the Draft Red Herring Prospectus (DRHP), the IPO will consist of 57.3 million shares being sold by six shareholders, which include IDBI Bank, the National Stock Exchange (NSE), Union Bank, State Bank of India, the Specified Undertaking of the Unit Trust of India (SUUTI), and HDFC Bank.
NSDL plays a vital role in India's capital markets, as it manages the majority of securities held and settled in dematerialized form.
The details outlined in the DRHP, submitted on July 7, 2023, indicate that this offering will be a pure offer for sale (OFS), with the NSE being one of the primary sellers.
In August 2023, SEBI temporarily placed the DRHP on hold, which is a common practice during investigations or when a company fails to provide required information.
The OFS in NSDL's IPO will feature the divestment of 5.73 crore shares from its six major shareholders. IDBI Bank plans to sell approximately 2.22 million shares, while the NSE is set to offload 1.8 crore shares from its stake.
Union Bank of India will offer 5.62 million shares, with the State Bank of India and SUUTI selling 4 million and 3.4 million shares, respectively. HDFC Bank is also involved in the sale.
Upon its listing, NSDL will become the second publicly traded depository services company in India, following the successful debut of Central Depository Services Limited (CDSL) in 2017.
As of 11:41 PM, CDSL's stock price had dipped over 1.11%, trading at around Rs 1,352.85 per share.