NSDL IPO – Everything You Need to Know

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The National Securities Depository Limited (NSDL), one of the two premier depositories in India, is planning to get listed on the Indian stock exchanges. The entity filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) and received the necessary approvals. If you’re looking to invest in NSDL IPO, here’s a closer look at some of the key details of this public issue. That said, before we check out the latest NSDL IPO news, let’s first learn more about the company and its business.

About the National Securities Depository Limited   

The National Securities Depository Limited (NSDL) was established in 1996 as the first electronic securities depository in the country. It is a SEBI-registered Market Infrastructure Institution (MII), whose primary business is offering demat accounts to investors through Depository Participants (DPs). In addition to this, NSDL also offers other products and services related to the financial and securities market.

According to a CRISIL report, NSDL is the largest depository in India in terms of the number of active instruments, number of issuers, market share in settlement volume and value of assets held as of March 31, 2023. 

The National Securities Depository Limited has over 31.46 million active demat accounts and 283 registered Depository Participants as of March 31, 2023. As of this date, the entity’s total revenue stood at ₹10,219.88 million, with a Profit After Tax (PAT) of ₹2,348.11 million. 

NSDL IPO Details   

Now that you have a fair understanding of the company and its business, here are the details of the upcoming IPO of NSDL. 

  • Subscription Date 

The National Securities and Depository Limited has not yet announced the issue opening and closing dates to the public. It is expected that the entity would release more information regarding the IPO subscription dates in the coming months.  

  • Issue Size 

According to the Draft Red Herring Prospectus (DRHP) filed by the company, the Initial Public Offer consists of only an Offer for Sale (OFS) from its initial investors. The company doesn’t plan on issuing any new shares to the public. 

Through the OFS, the selling shareholders are planning to offload up to 5,72,60,001 equity shares to the public. The details of the Offer for Sale are tabulated below. 

Selling ShareholderNumber of Equity Shares Offered
IDBI Bank Limited2,22,20,000 equity shares
National Stock Exchange of India Limited1,80,00,001 equity shares
Union Bank of India56,25,000 equity shares
State Bank of India40,00,000 equity shares
HDFC Bank Limited40,00,000 equity shares
Specified Undertaking of the Unit Trust of India34,15,000 equity shares
  • Price Band 

As with the NSDL IPO date, the issue’s price band has not been announced as yet. The details of the offer price will be made public once the company files the final Red Herring Prospectus (RHP) with the SEBI.

  • Investor Reservation Portion

The NSDL’s upcoming IPO features reservations for different categories of investors. As per the DRHP, around 50% of the offer is reserved exclusively for Qualified Institutional Buyers (QIBs). Of the remaining 50%, around 15% of the offer is reserved for Non-Institutional Investors (NIIs) and 35% for the retail investor category.

  • Listing Details

The National Stock Exchange (NSE) has a close association with NSDL. Therefore, the shares of NSDL would be listed only on the Bombay Stock Exchange (BSE) and not on the NSE. 

  • Objects of the Issue 

Since the NSDL IPO comprises only an Offer for Sale, the proceeds from the public issue go entirely to the selling investors. The company does not get any of the funds from this public issue. 

Conclusion

Although the National Securities Depository Limited was the first depository to be established in India, it took the company more than 25 years to come up with a public issue. As of yet, there isn’t any information regarding the issue price band or the opening and closing dates. However, market experts expect more NSDL IPO details to come to light once the final Red Herring Prospectus is filed. 
If you’re planning to invest in the NSDL IPO online, download our app today. You can open demat account with us through a paperless process and get your investment journey underway in just a few minutes.

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