The Securities and Exchange Board of India (SEBI) has granted National Securities Depository Ltd (NSDL) approval for its impending first public offering (IPO). NSDL is a major player in the Indian capital markets, handling most securities stored and settled in dematerialized form.
The National Stock Exchange (NSE) will be one of the primary sellers in the IPO, which will be a pure offer for sale (OFS), according to the Draft Red Herring Prospectus (DRHP) filed on July 7, 2023. As is customary when there is an ongoing inquiry or a delay in submitting sought information, SEBI temporarily suspended the DRHP in August 2023.
In August 2023, however, SEBI had put the DRHP on hold. This could happen if the company doesn’t give the needed information or an inquiry is still underway.
Six significant shareholders—IDBI Bank, NSE, SBI, HDFC Bank, Union Bank of India, and SUUTI—will dispose of 5.73 crore shares as part of the offer for sale (OFS) in NSDL’s IPO. The NSE intends to dispose of 1.8 crore shares from its holding in the depository, while IDBI Bank seeks to sell up to 2.22 million shares.
State Bank of India and the Administrator of the Specified Undertaking of the Unit Trust of India (SUUTI) will sell 4 million and 3.4 million shares, respectively. In comparison, Union Bank of India will sell 5.62 million shares. Among the investors taking part in the IPO is HDFC Bank.
Following its peer, Central Depository Services Limited (CDSL), which made a successful market debut in 2017, NSDL will be the second depository services business to be publicly traded on local exchanges once it is listed. In the meantime, CDSL’s stock price dropped by more than 1.11% at 11:41 PM, trading at about Rs 1,352.85 per share.
