India’s largest depository National Securities Depository Limited (NSDL) has filed its Draft Red Herring prospectus with the Securities and Exchange Board of India (Sebi) for an IPO.
The initial public offering will be a full offer for sale (OFS), allowing investors to sell up to 5.726 crore equity shares. IDBI Bank and HDFC Bank will be among those participating in the OFS.
With this, NSDL will become the second depository services company to be listed on domestic stock exchanges, following the successful market debut of its peer, Central Depository Services Limited (CDSL), in 2017. CDSL made a remarkable impact in the market, raising Rs 524 crore with its issue being subscribed a staggering 170 times.
The DRHP shows that the price band for the IPO has been set at ₹90-94 per share. The IPO is expected to raise around ₹530 crore for the selling shareholders.
NSDL is a leading depository in India, with a market share of over 90%. It was founded in 1996 and is headquartered in Mumbai. NSDL provides a range of services to its clients, including dematerialization of securities, settlement of trades, and safekeeping of securities.
The IPO of NSDL is expected to be a landmark event in the Indian capital markets. It will be the first IPO of a depository in India. The IPO is expected to be well-received by investors, as NSDL is a well-established and profitable company.
The IPO is expected to open on July 11, 2023, and close on July 14, 2023. The shares will be listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) on July 21, 2023.
